J656 


111  mil  lilt  II"  Ml 
$B    175   ^114 


STATE     OF     NEW    YORK 

Public  Service  Commission 

SECOND     DISTRICT 

Albany,  December  2,  1908. 


To. 


The  following  order  has  been  adopted  by  this  Commission,  and  is  hereby 
served  on  you.     Please  acknowledge  receipt  at  once. 

Yours  very  truly. 


State  op  New  York, 

©ftlcc  Of  tbe  t)ublic  Service  Commission  }■  **•• 

SECOND    DISTRICT 

I  have  compared  the  following  copy  with  the  original  on  file  in  this  office, 
and  I  do  HEREBY  CERTIFY  the  same  to  be  a  correct  transcript  therefrom 
and  of  the  whole  thereof. 

IKIlitneSS  my  hand  and  the  Seal  of  Office  of  the  Public  Ser- 
vice Commission,  Second  District,  at  the  City  of 
Albany,  this  second  day  of  December,  one  thousand 
nine  hufvd red  ,ayd  eight.'  '.'/ 


,-<?«i»," 


Secretary. 


274664 


•    ->•.'• 


•  -•  ••"  ^•. 


State  of  New  York, 
Public  Service  Commission.  Seconti  Dtstrtct. 
At  a  sudsion  of  the  Public  Service  Lommission,  Second 
District,  lield  at  the  Capitol,  Albany,  on  the  21st 
day  of  October,  1908. 
Present : 

'     Frank  W.  Stevens,  Chairman, 
Thomas  M.  Osborne, 
Martin  S.  Decker, 
James  E.  Sague, 
John  B.  Olmsted, 

Commissioners. 
Ordered:  That,  except  as  hereinafter  provided: 

1.  On  and  after  January  1,  1909,  every  electrical  corporation  shall  keep 
upon  its  books  the  accounts  prescribed  or  defined  in  the  hereto  annexed 
schedule  marked  "  Schedule  A",  so  far  as  the  said  accounts  are  pertinent  to 
the  facts  and  circumstances  of  the  said  corporation.  The  term  electrical  cor- 
poration is  used  herein  in  the  sense  defined  in  the  Public  Service  Commissions 
Law. 

2.  On  and  after  the  date  of  service  of  this  order  on  any  such  electrical 
corporation,  such  corporation  shall  not  charge  to  any  account  representing 
cost  of  property  any  discount  or  commission  on  securities  issued  by  the  said 
corporation,  but  shall  charge  all  such  discounts,  commissions,  and  other 
expense  connected  with  the  issue  of  securities  subsequent  to  the  said  date  of 
service,  in  accordance  with  the  directions  contained  in  the  definitions  of  the 
account  named  Organization,  and  the  account  named  Unamortized  Debt  Dis- 
count and  Expense,  in  the  said  "  Schedule  A". 

3.  On  and  after  January  1,  1909,  every  said  electrical  corporation  shall  keep 
upon  its  books  the  accounts  prescribed  or  defined  in  the  hereto  annexed 
schedule  marked  "  Schedule  B ",  so  far  as  the  same  are  pertinent  to  the 
facts  and  circumstances  of  the  said  corporation. 

4.  During  the  year  beginning  January  1,  1909,  any  said  corporation  may 
for  purposes  of  comparison  with  prior  years  keep  on  its  books  any  account 
pertaining  to  revenues,  revenue  deductions,  income  deductions,  and  appro- 
priations ( as  defined  in  the  said  "  Schedule  B  " )  which  it  had  on  its  books 
during  the  year  begun  January  1,  1908;  provided  that  on  or  before  January 
1,  1909,  there  be  filed  with  the  Public  Service  Commission  a  statement  con- 
taining a  list  of  the  said  accounts  pertaining  to  the  year  begun  January  1, 
1908,  and  definitions  of  such  accounts. 

5.  For  purposes  of  improving  the  efficiency  of  administration  and  operation, 
any  corporation  may,  unless  or  until  otherwise  ordered,  keep  upon  its  books 
any  temporary  or  experimental  accounts  and  any  accounts  covering  particular 
divisions  of  its  operations,  provided  that  in  respect  of  each  siicli  temporarj', 
experimental,  or  divisional  account,  the  said  corporation  shall  (ile  with  the 
Public  Service  Commission,  at  least  ten  days  in  advance  of   the  time  when 

[3] 


4  .FiJ.Bilp  ^EfiVlCE    G'OMMISSION,    SecOXD   DlSTfilCT 

the  said  account  is  to  be  instituted,  a  statement  showing  the  name  of  the 
said  account,  the  date  when  it  is  to  be  instituted,  the  purpose  for  which  it  ia 
to  be  kept,  the  period  of  time  during  which  it  is  to  be  kept,  and  a  clear 
and  accurate  definition  of  the  classes  of  items  and  facts  to  be  contained  in 
the  said  account;  and  in  case  of  a  divisional  account,  the  definition  of  the 
division  covered.  Upon  compliance  with  the  provisions  of  this  paragraph, 
any  account  herein  prescribed  or  defined  in  either  said  "  Schedule  A"  or  said 
"  Schedule  B  "  may  be  subdivided. 

6.  All  notices  herein  required  to  be  filed  concerning  accounts  shall  be  upon 
sheets  9i^  inches  by  12  inches  in  size,  and  shall  be  entitled  in  the  name  of 
the  corporation  filing  said  notices,  followed  by  a  brief  statement  of  the  charac- 
ter of  the  accounts  covered  by  the  notice. 


SCHEDULE  A. 


bala:n'ce  sheet  or  ikdicant  accounts. 

1.  Electrical  Corporations  and  Electric  Operations  defined. —  Section  2 
of  the  Public  Service  Commissions  Law  defines  electrical  corporation  as 
follows : 

I  2.  .  .  .  The  term  "  electrical  corporation  "...  includes  everj'  corpora- 
tion, company,  association,  joint  stock  association,  partnership  and  person,  their 
lessees,  trustees  or  receivers  appointed  by  any  court  whatsoever  (other  than  a  rail- 
road or  street  railroad  corporation  generating  electricity  for  its  own  use  exclu- 
sively), owning,  operating,  managing  or  controlling  any  plant  or  property  for' 
generating  and  distributing,  or  generating  and  selling  for  distribution,  or  distribut- 
ing electricity  for  light,  heat  or  power  or  for  the  transmission  of  electric  current 
for  such  purposes. 

Electric  operations,  as  the  term  is  hereinafter  used,  include  all  acts  and 
transactions  directly  connected  with  the  operation  of  a  plant  for  the  produc- 
tion of  electric  energy,  the  transmission  thereof  and  the  supply  thereof  to 
consumers  for  light,  heat,  or  power,  and  all  operations  incident  thereto,  in- 
cluding the  collection  of  revenues  therefor  and  the  disposition  of  byproducts 
produced  in  connection  therewith. 

2.  Accounts  to  be  kept  by  double-entry  method. —  All  accounts  kept  by  any 
corporation  or  person  within  the  scope  of  the  present  order  shall  on  and  after 
January  1,  1909,  be  kept  by  the  double-entry  method. 

Note. —  This  requirement  is  not  Intended  to  apply  to  purely  statistical  accounts. 
CAPITAL  ACCOUNTS. 

3.  Capital  defined. —  As  the  term  is  used  herein,  by  capital  of  a  corporation 
is  meant  all  property  devoted  to  the  rendering  of  the  services  or  the  pro- 
duction of  the  commodities  which  are  within  the  purposes  of  the  corporation. 

4.  Fixed  Capital  defined. —  Capital  which  has  an  expectation  of  life  in 
service  of  more  than  one  year  (exception  being  made  of  hand  and  other  small 
portable  tools  liable  to  be  lost  or  stolen*)   is  called  fixed  capital. 

5.  Floating  Capital  defined. —  Capital  other  than  fixed  capital  is  called  float- 
ing capital. 

6.  General  Capital  and  Departmental  Capital  defined. —  Fixed  capital  is  di- 
visible into  general  capital  and  departmental  capital,  general  capital  being 
that  which  is  indiscriminately  available  for  the  use  of  two  or  more  classes 
of  operations,  while  departmental  capital  is  that  assigned  solely  or  principally 
to  a  single  class  of  operations. 


'  Hand  and  other  small  portable  tools  liable  to  he  lost  or  stolen  shall,  when  first 
acquired  and  before  Issued  for  use,  be  carried  In  a  suitable  Materials  and  Supplies 
account ;  when  Issued  they  shall  be  charged  to  the  appropriate  expense  account. 
Portable  tools  and  apparatus  of  special  value  may,  however,  be  charged  to  the 
appropriate  tangible  capital  account,  and  remain  therein  so  long  as  record  is  kept 
of  the  persons  to  whom  such  tools  and  apparatus  are  issued  and  such  persons  are 
made  responsible  therefor. 

[5] 


6  Public  Service  Commission,  Second  Disteict 

7.  Landed  Capital  and  Non-Iandsd  Capital  defined. —  Fixed  capital  is  also 
divisible  into  landed  capital  and  non-landed  capital.  Landed  capital  includes 
all  interests  in  land  (exclusive  of  improvements  thereon)  the  term  of  which 
is  more  than  one  year.  All  other  fixed  capital  is  herein  cai>ed  non-landed 
capital. 

8.  Intangible  and  Tangible  Capital  distinguished. —  Non-landed  capital  is 
divisible  into  intangible  and  tangible.  Intangible  capital  comprises  organ- 
ization, franchises,  patent-rights,  and  all  other  intangible  property  within 
the  definition  of  fixed  non-landed  capital  as  above  stated.  Tangible  capital 
comprises  structures  and  equipment  having  an  expectation  of  life  in  service 
of  more  than  one  year.  Because  of  their  liability  to  loss  or  theft,  hand  and 
other  small  portable  tools  are  excepted  from  tangible  capital,  and  the  cost 
of  such  tools  when  issued  is  required  to  be  treated  as  a  part  of  ths  operating 
expenses.' 

9.  Further  Classification  of  Capital. —  Capital  is  also  divisible  into  original 
capital,  additions,  betterments,  and  reneicals  and  replacements,  as  defined 
below.  Charges  to  capital  accounts  shall  show  these  divisions  as  set  forth 
in  paragraph  21,  infra. 

10.  Original  Capital  defined. —  Original  Capital  is  that  put  into  service  at 
the  outset  of  an  enterprise. 

11.  Additions  defined. — Additions  include  additional  structures,  facilities,  or 
equipment  not  taking  the  place  of  anything  previously  existing. 

12.  Betterments  defined. —  Betterments  include  the  enlargement  or  improve- 
ment of  existing  structures,  facilities,  and  equipment. 

13.  Renewals  defined. —  Renewals  include  all  extensions  of  terms  of  years 
in  land  and  tangible  fixed  capital,  and  all  extensions  of  the  life  period  of 
franchises  and  other  intangible  fixed  capital. 

14.  Replacements  defined. —  Replacements  include  all  substitutions  for  capi- 
tal exhausted  or  become  inadequate  in  service,  the  substitutes  having  sub- 
stantially no  greater  capacity  than  the  things  for  which  they  were  substi- 
tuted. When  a  substitute  has  a  substantially  greater  capacity  than  that 
for  which  it  is  substituted,  the  cost  of  substitution  of  one  of  the  same 
capacity  as  the  thing  replaced  should  be  charged  as  a  replacement,  and  the 
remaining  portion  of  the  cost  of  .the  actual  substitute  should  be  charged  as 
a  betterment. 

15.  Repairs  defined. —  Wlien  through  wear  and  tear  or  through  casualty  it 
becomes  necessary  to  replace  some  part  of  any  structure,  facility,  or  unit 
of  equipment,  and  the  extent  of  such  replacement  does  not  amount  to  a  aub- 
stantial  change  of  identity  in  such  structure,  facility,  or  unit  of  equipment, 
the  replacement  of  such  part  is  to  be  considered  a  repair,  and  the  cost  of 
such  repair  is  to  be  treated  as  an  operating  expense  and  must  not  be  charged 
as  a  replacement  in  any  capital  account. 


>  Hand  and  other  »mall  portable  tools  liable  to  be  lost  or  stolen  shall,  when  first 
acquired  and  before  Issued  for  use,  be  carried  in  a  suitable  Materials  and  Supplies 
account ;  when  issued  tlie.v  shall  be  oharKed  to  the  appropriate  expense  account. 
Portable  tools  and  apparatus  of  special  value  may,  however,  be  charged  to  the 
approi)rlafe  tangible  capital  account,  and  remain  therein  so  long  as  record  is  kept 
of  the  per.sons  to  whom  Hueh  tools  and  apparatus  are  issued  and  such  persons  are 
made  responsible  therefor. 


Accounts  for  Electrical  Corporations       1 

i6.  First  entries  must  enable  identification. —  Throughout  all  capital  ac- 
counts, the  first  entry  in  respect  of  any  particular  thing  shall  describe  it 
with  such  particularity  as  to  enable  its  identification,  and  shall  give  it  a 
distinguishing  name,  number,  or  other  designation  by  which  it  shall  there- 
after be  designated  in  every  entry  in  any  capital  account  which  in  any  way 
concerns  it.  In  the  case  of  continuous  structures  like  railroad  track,  or 
electric  line,  or  pipe  line,  such  structures  shall  be  itemized  to  the  extent  that 
no  item  shall  contain  more  than  one  operating  division  or  more  than  one 
type  ef  construction,  and  the  entry  in  relation  to  any  item  shall  describe  the 
size,  weight,  type,  and  other  principal  physical  characteristics  of  the  chief 
constituent  parts,  together  with  their  spacing  if  discontinuous. 

17.  Costs  of  new  capital  to  be  actual  money  costs. —  All  charges  made  to 
capital  or  other  accounts  on  or  after  January  1,  1909,  shall  be  the  actual 
money  cost  of  the  things  in  respect  of  which  they  are  made.  When  the  con- 
sideration actually  given  for  the  thing  in  respect  of  which  a  charge  to  a 
capital  account  is  made  is  anything  other  than  money,  the  actual  considera- 
tion shall  be  described  in  the  entry  with  sufficient  fullness  and  particularity 
to  identify  it,  and  the  amount  charged  shall  be  the  actual  money  value  of 
such  consideration  at  the  time  of  the  transaction. 

1 8.  Discounts  upon  securities  not  to  be  charged  to  capital  accounts. —  Dis- 
counts upon  securities  and  other  commercial  paper  issued  in  payment  for 
capital  are  to  be  provided  for  in  other  accounts  and  must  in  no  case  be 
charged  to  the  capital  accounts. 

ig.  Costs  of  labor,  materials,  and  supplies. — Cost  of  labor  (employed  in  con- 
struction) includes  not  only  wages,  salaries,  and  fees  paid  emploj'ees,  but 
also  such  personal  expenses  of  employees  as  are  borne  by  the  corporation. 
Cost  of  material  and  supplies  consumed  in  construction  is  the  cost  at  the 
places  where  they  enter  into  construction,  including  cost  of  transportation 
and  inspection  when  specifically  assignable.  If  such  materials  and  supplies 
are  passed  through  storehouses,  their  cost  entered  in  the  account  may  include 
a  suitable  proportion  of  store  expense. 

20.  Withdrawals  or  retirements. —  When  anything  is  withdrawn  or  retired 
from  service,  the  amount  at  which  such  thing  stood  charged  in  the  capital 
account  shall  be  credited  to  the  capital  account  in  which  it  stood  charged 
at  the  time  of  withdrawal,  and  the  entry  of  such  credit  shall  cite  by  name 
and  page  of  book  or  other  record  the  original  entry  of  cost  of  the  thing 
withdrawn.  If  there  is  no  such  original  entry,  that  fact  shall  be  stated  in 
connection  with  the  credit  entry,  and  the  actual  amount  orig>ially  charged 
shall  be  credited.  If  such  amount  is  not  known,  it  shall  be  estimated,  the 
facts  upon  which  the  estimate  is  based  shall  be  shown,  and  the  amount  thus 
estimated  to  be  the  original  charge  in  respect  of  such  thing  withdrawn  shall 
be   credited. 

21.  Particulars  required  to  be  shown  in  entries. —  Every  charge  made  to  a 
capital  account  on  or  after  January  1,  1909,  shall  show  whether  the  thing 
in  respect  of  which  the  charge  is  made  is  original  capital,  or  an  iuldition.  a 
betterment,  a  renewal,  or  a  replacement.  If  the  thing  is  a  betterment,  the 
entry  shall  designate  the  thing  enlarged  or  improved  and  shall  cite  by  name 
and  page  of  book  or  other  record  the  original  entry  of  cost  of  such  thing 
enlarged  or  improved.     If  the  thing  to  which  any  charge  hereafter  made  re- 


8  Public  Service  Commission,  Second  District 

lates.  is  a  renewal  or  a  replacement,  the  entry  made  in  respect  thereof  shall 
designate  the  thing  renewed  or  replaced  and  shall  cite  by  name  and  page 
of  book  or  other  record  the  original  entry  or  entries  of  cost  of  such  thing 
renewed  or  replaced.  If  there  is  no  entry  in  the  accounts  of  the  corporation 
showing  the  cost  (to  the  corporation)  of  the  thing  bettered,  renewed,  or  re- 
placed, that  fact  shall  be  stated  in  the  entry  describing  the  betterment, 
renewal,  or  replacement,  and  the  original  cost  of  such  tiling  to  the  corpora- 
tion shall  be  stated.  Such  cost  shall  be  estimated  if  not  known,  and  when 
estimated  the  basis  of  such  estimation  shall  be  shown. 

22.  Betterments  Involving  partial  destruction  of  thing  bettered. —  If  any 
betterment  involves  the  partial  destruction  or  partial  reconstruction  of  the 
thing  bettered,  only  such  portion  of  the  cost  of  the  change  shall  be  charged 
as  a  betterment  as  will  when  added  to  the  original  cost  (estimated  if  not 
known)  of  the  thing  betjtered  give  the  cost  of  reconstruction  or  replacement 
of  the  thing  as  bettered,  and  the  remainder  of  the  cost  of  the  change  (account 
being  taken  of  any  salvage)  shall  be  charged  to  the  appropriate  repair 
account. 

E.  g.,  a  biilldinK,  original  cost  unknown  but  estimated  to  be  $15,000,  Is  bettered 
by  the  construction  of  an  elevator  shaft,  and  its  stairways  are  modified  so  as  to  be 
fireproof ;  the  actual  expenditure  for  these  changes  is  .$.3.000 ;  the  estimated  cost 
of  replacement  of  the  building  (as  modified)  with  one  equally  serviceable  and  with 
an  equal  expectation  of  life  Is  $16,000;  the  charge  to  capital  account  as  a  better- 
ment should  be  $1,000,  and  the  remainder  ($2,000)  of  the  expenditure  should  be 
charged  to  the  appropriate  repairs  account. 

23.  Plant  and  equipment  and  other  capital  purchased. —  When  any  fixed 
capital  in  the  form  of  a  going  or  completed  plant  is  purchased,  an  appraisal 
of  such  capital  so  acquired  shall  be  made,  and  the  different  constituent  ele- 
ments of  the  plant  (and  equipment,  if  any)  or  other  capital  acquired  shall 
be  appraised  at  their  structural  value;  that  is  to  say,  at  the  estimated  cost 
of  replacement  or  reproduction  less  deterioration  to  the  then  existing  condi- 
tion through  wear  and  tear,  obsolescence,  and  inadequacy.  If  the  actual 
money  value  of  the  consideration  given  for  the  plant  or  other  capital  was 
at  the  time  of  the  acquisition  in  excess  of  such  appraised  value,  the  excess 
shall  be  charged  to  the  account  "  Other  Intangible  Electric  Capital,"  and  the 
appraised  values  of  the  constituent  elements  shall  be  charged  to  the  appro- 
priate accounts  as  designated  in  tlic  following  definitions  of  accounts  for  fixed 
capital.  If  the  actual  money  value  of  the  consideration  given  was  not  in 
excess  of  such  appraised  value,  such  actual  money  value  sliall  be  distributed 
through  the  said  accounts  in  proportion  to  the  said  appraised  value  of  the 
constituent  elements  appropriate  to  the  respective  accounts.  Full  report  of 
the  contract  of  acquisition,  the  consideration  given  therefor,  the  determina- 
tion of  the  actual  money  value  of  such  consideration,  the  appraisal,  and  the 
amounts  charged  to  the  respective  accounts  for  each  plant  or  other  such  fi.xed 
capital  purchased,  will  be  required  to  be  made  to  the  Public  Service  Commis- 
sion, and  the  purchaser  will  be  required  to  procure  in  connection  with  the 
acquisition  of  any  such  plant  or  other  fixed  capital  all  existing  records,  memo- 
randa, and  accounts  in  the  posst^ssion  or  control  of  the  grantor  relating  to 
the  construction  and  improvement  of  sut-h  plant,  and  to  preserve  such  records, 
memoranda,  and  accounts  until  authorized  by  law  to  destroy  or  otherwi84 
dispose  of  them. 


Accounts  fob  Electrical  Corporations       9 

24.  Definitions   of  Fixed  Capital  accounts. —  In  the  following  definitions  of 
accounts  the  letters  and  numbers  prefixed  to  the  titles  are  inserted  solely  for 
convenience  of  reference  and  are  no  part  of  the  titles  or  of  the  definitions: 
ElOO.  Fixed  Capital,  December  31,  1908. 

Charge  to  this  account  all  the  Fixed  Capital  of  the  accounting  person  or 
corporation  devoted  to  electric  operations  as  such  capital  stood  at'  the 
close  of  December  31,  1908.  Such  charges  shall  be  made  at  the  figures  at 
which  such  capital  was  carried  on  the  books  of  the  said  person  or  corporation 
on  that  date.  When  any  capital  included  in  such  account  is  retired  from 
service,  the  amount  at  which  it  is  charged  therein  shall  be  credited  to  this 
account;  the  amount  of  depreciation  or  other  amortization  thereon  appli- 
cable to  the  period  subsequent  to  December  31,  1908,  shall  be  charged  to 
account  No.  374,  "Accrued  Amortization  of  Capital,"  proper  account  shall  be 
taken  of  any  salvage,  and  the  remainder  of  the  amount  originally  charged 
to  capital  shall  be  concurrently  charged  to  the  Corporate  Surplus  or  Deficit 
account  (or  equivalent  account  carried  on  the  books  on  December  31,  1908), 
unless  there  was  carried  on  the  books  at  that  date  a  reserve  to  cover  retire- 
ment of  capital  from  service,  in  which  case  the  said  concurrent  charge  shall 
be  made  to  such  retirement  reserve  account.  If  the  amount  at  which  the  said 
capital  in  service  on  December  31,  1908,  and  subsequently  retired  from  service, 
was  included  in  the  said  account  is  not  disclosed  on  the  books  and  records 
of  the  accounting  person  or  corporation  and  is  not  within  the  knowledge  of 
such  person  or  corporation  or  officers  or  other  employees  thereof,  it  shall  be 
estimated,  and  such  estimated  amount  shall  be  treated  as  is  above  directed  for 
the  actual  amount,  the  fact  of  estimation  being  stated  in  the  entry. 

Note. —  Corporations  will  be  required  to  carry  as  sub-accounts  of  the  account 
"  Fixed  Capital,  December  31,  1908,"  the  several  accounts  on  their  hooks  on  that 
date  which  are  combined  to  make  up  the  said  account,  and  to  furnish  information 
concerning  such  sub-accounts  in   their  annual  reports. 

The  following  capital  accounts  are  prescribed  for  transactions  subsequent 
to  December  31,   1908: 

EllO.  Land  Devoted  to  Electric  Operations. 

Charge  to  this  account  the  cost  of  the  accounting  corporation's  landed 
capital  which  is  devoted  to  electric  operations  as  hereinbefore  defined.  This 
includes  land  occupied  by  generating  stations  and  their  appurtenances,  rigl/ts 
of  way  for  transmission  and  distribution  lines  and  other  electric  operations; 
also  those  for  canal  and  pipe  lines,  water  rights,  and  rights  of  pondage,  flow- 
age,  and  submersion,  where  such  rights  have  lives  in  excess  of  one  year  from 
the  date  when  such  land  is  placed  in  service.  Such  cost  includes,  when 
assumed  or  paid  by  the  purchaser  in  its  own  behalf,  cost  of  registration  of 
title,  cost  of  examination  of  title,  conveyancer's  and  notary's  fees,  purchasing 
agent's  commissions  or  fees,  or  proportion  of  purchasing  agent's  salary,  taxes 
accrued  to  date  of  transfer  of  title,  and  all  liens  upon  the  title  acquired; 
also  costs  of  obtaining  consents  and  payments  for  abutting  damages. 

Note  A. —  Cost  of  buildings  and  other  improvements  must  not  be  included  in  this 
account. 

Note  B. —  If  at  the  time  of  acquisition  of  an  Interest  in  lands  It  extends  to 
buildings  or  other  Improvements  thereon,  which  improvements  are  devoted  by  the 
corporation  to  its  electric  operations,  and  the  contract  of  acquisition  does  not  de- 
termine the  price  of  such  improvements,  they  shall  be  appraised  at  their  fair  cash 
value  for  use  in  such  operations,  and  such  appraised  value  shall  be  charged  to  the 


10  Public  Service  Commission,  Second  Distkict 

appropriate  structures  account,  and  excluded  from  the  account  "  Land  Devoted  to 
i:i»*ctiic  Operations  ".  If  such  Improvements  are  not  devoted  to  electric  opcratlono 
l>ut  are  devoted  to  other  operations  or  held  as  Investments,  the  cost  (or  appraised 
value  If  the  cost  is  not  determined  In  the  contract  of  acquisition)  shall  be  charged 
to  the  appropriate  investment  account  or  capital  account  for  other  operations.  If 
the  improvements  are  removed  or  wrecked,  the  salvage  (less  the  cost  of  removal 
or  wreckage)  shall  be  excluded  from  the  account  "  Land  Devoted  to  Electric  Opera- 
tions ".  The  entries  in  this  account  must  be  made  In  such  wise  as  to  enable  th»» 
corporation  to  show  in  its  annual  report  to  the  Public  Service  Commission  the 
subdivision  of  the  cost  of  its  land  devoted  to  electric  operations  Into  the  following. 

Land  Occupied  by  Generating  Stations. 

Land  Occupied  by  Outside  Substations. 

Water  Rights. 

Other  Land  Devoted  to  Electric  Operations. 

101.  Okoanization. 

Charge  to  this  account  all  fees  paid  to  governments  for  the  privilege  of 
incorporation,  and  all  office  and  other  expenditure  incident  to  organizing  the 
corporation  or  other  enterprise  and  putting  it  in  readiness  to  do  business. 
This  includes  cost  of  preparing  and  distributing  prospectuses,  cost  of  solicit- 
ing subscriptions  for  stock  (but  not  for  loans  nor  for  the  purchase  of  bonds 
or  otlier  evidence  of  indebtedness),  cash  fees  paid  to  promoters,  and  the  actual 
cash  value  at  the  time  of  organization  of  securities  paid  to  promoters  for  their 
services  in  organizing  the  enterprise,  counsel  fees,  cost  of  preparing  and  issu- 
ing certificates  of  stock,  and  cost  of  procuring  certificates  of  necessity  from 
state  authorities,  and  other  like  costs.  Like  costs  incident  to  preparing  and 
filing  certificates  of  authorization  of  increase  of  capital  stock,  and  to  the 
negotiation  and  issue  of  stock  thereunder,  shall  be  classed  as  additions.  Cost 
of  preparing  and  filing  certificates  of  amendment  of  articles  of  incorporation 
shall  be  classed  as  a  betterment.  Cost  of  preparing  and  filing  papers  in  con- 
nection with  the  extension  of  the  term  of  incorporation  or  with  reincorporation 
consequent  upon  reorganization  sliall  be  classed  as  a  renewal.  This  account 
sliall  not  include  any  discounts  upon  stocks  or  other  securities  i.ssued,  nor 
sliall  it  include  any  costs  incident  to  negotiating  loans  or  selling  bonds  or 
other  evidence  of  indebtedness. 

E102.  Fbanciiises   (Electric). 

To  this  account  shall  be  charged  "the  amount  (exclusive  of  any  tax  or  an- 
nua/ charge)  actually  paid  to  the  State  or  to  a  political  subdivision  thereof 
as  the  consideration  for  the  grant  of  such  franchise  or  riglit  "  (section  C9 
of  tiie  Public  Service  Commissions  Law)  as  is  necessary  to  the  conduct  of 
the  corporation's  electric  operations.  If  any  such  franchise  is  acquired 
by  mesne  assignment,  the  ciiarge  to  this  account  in  respect  thereof  must 
not  exceed  the  amount  actually  paid  therefor  by  the  corporation  to  its  as 
signor,  nor  shall  it  exceed  the  amount  specified  in  the  statute  above  quotetl. 
Any  excess  of  the  amount  actually  paid  by  the  corporation  over  the  amount 
specified  in  the  statute  shall  be  cliarged  to  the  account  "  Other  Intangibl.- 
Electric  Capital  ".  If  any  such  franchise  has  a  life  of  not  more  than  one  year 
after  the  date  when  it  is  placed  in  service,  it  shall  not  be  charged  to  thif.  ac- 
count but  to  the  appropriate  accounts  in  "  Operating  Expenses,"  and  in  "  Pre- 
payments "  if  extending  beyond  the  fiscal  year. 

Payments  made  to  the  State  or  to  some  subdivision  thereof  as  a  considera- 
tion for  granting  an  extension  for  more  than  one  year  of  the  life  period  of  it 
franchise  shall  be  classed   as   renewals.     Those   made  as  a  consideration  for 


Accounts  for  Ei.ectuical  Coi:i'01{ations  11 

franchises  or  extensions  thereof  covering  adrlitioiial  territory  to  be  operate^! 
as  a  part  of  an  existing  system  shall  be  classed  as  betterments.  If  the  fran- 
chises cover  separate  and  distinct  new  enterprises,  the  payments  therefor  snail 
be  classed  as  original. 

Note. — Annual  or  more  frequent  paj-ments  in  respect  of  franchises  must  not  be 
charged  to  this  account  but  to  the  appropriate  tax  or  operating  expense  account. 

E103.  Patent-rights  (Electric). 
Charge  to  this  account  the  cost  of  all  rights  (having  a  life  of  more  than 
one  year  from  the  date  when  placed  in  service)  acquired  by  the  corporation 
in  or  under  valid  patents  granted  by  the  United  States  to  inventors  for  in- 
ventions and  discoveries  which  are  necessary  to  the  economical  conduct  of  the 
corporation's  electric  operations.  If  any  such  right  is  extended  to  cover  a 
further  period  of  time  than  that  covered  by  the  original  grant,  the  cost  of 
such  extension  shall  be  classed  as  a  renewal.  A  patent-right  acquired  for  usu 
in  an  existing  system  and  necessary  to  the  economical  operation  thereof  shall 
be  classed  as  an  addition. 

El 04.  Other  Intangible  Electric  Capital. 

Charge  to  this  account  the  cost  of  all  other  property  coming  within  the 
definition  of  intangible  capital  and  devoted  to  electric  operations.  All  entries 
of  charges  to  this  account  shall  describe  the  acquired  property  with  sufficient 
particularity  clearly  to  identify  it,  and  shall  also  show  specifically  the 
j)rincipal  from  whom  acquired  and  all  agents  representing  such  principal  in 
the  transaction;  also  th3  term  of  life  of  such  property,  estimated  if  not 
known,  and  if  estimated,  the  facts  upon  which  the  estimate  is  based. 
E121.  General  Structures. 

Charge  to  this  account  the  cost  of  all  buildings  and  other  structures  of  a 
permanent  character  devoted  to  general  corporate  purposes,  not  restricted 
to  electric  operations  and  not  includible  in  any  of  the  departmental  accounts; 
also  of  all  fixtures  permanently  attached  thereto  and  made  a  part  thereof, 
such  as  water  pipes  and  fixtures,  steam  pipes  and  fixtures  for  warming  and 
ventilating,  gas  pipes  and  fixtures  for  lighting,  etc.,  electric  wiring  and  fix- 
tures for  lighting,  signaling,  etc.;  elevators,  etc.,  and  the  engines  and  motors 
specially  provided  for  operating  them;  furnaces,  boilers,  etc.,  specially  pro- 
vided for  producing  steam  for  such  engines  and  for  heating ;  electric  gen- 
erators specially  provided  for  producing  current  for  lighting  such  buildings, 
etc.  This  account  includes  such  piers  and  other  foundations  for  machinery 
and  apparatus  as  are  designed  to  be  as  permanent  as  the  buildings  in  (or  in 
connection  with)  which  they  are  constructed,  and  to  outlast  the  first  ma- 
chinery or  apparatus  mounted  thereon. 

Note  A. —  Among  such  l)uildings  may  be  mentioned  general  office  buildings,  gen- 
eral shop  buildings,  general  storehouses,  general  stable  buildings,  etc.  AVliere 
general  offices,  shops,  storehouses,  stables,  etc.,  are  in  buildings  includible  i:i  « 
departmental  account,  as  e.  g.,  in  a  power  station  building,  no  part  of  the  cost  of 
such  building  shall  be  charged  to  this  account.  This  account  is  provided  for  struc- 
tures of  a  general  or  miscellaneous  character  not  assignable  to  any  particular 
department. 

Note  B. —  When  furnaces  and  boilers  are  used  primarily  for  furnishing  steam 
for  some  particular  department  and  only  incidontaily  for  furnishing  steam  for 
heating  a  general  building  and  operating  the  equipment  therein,  the  entire  cost  of 
such  furnaces  and  boilers  shall  be  charged  to  the  appropriate  departmental  capital 
account,  and  no  part  to  the  account   "  General  Structures  ". 


12  Public  Service  Commission,  Second  District 

Note  C. —  The  cost  of  specially  provided  foundations,  not  expected  to  outlast 
the  machinery  or  apparatus  mounted  thereon,  should  be  charged  to  the  same 
account  as  is  the  cost  of  the  machinery  or  apparatus  for  which  they  are 
provided. 

E122.  General  Equipment. 

Charge  to  this  accoimt  the  cost  of  all  equipment  of  general  structures,  as 
provided  under  the  following  heads: 

a.  General  Office  Equipment :  This  includes  the  cost  of  all  equipment  of 
general  offices,  such  as  desks,  chairs,  tables,  movable  safes,  filing  cases,  drafting 
room  equipment,  and  other  like  ollice  appliances  and  equipment;  also  engi- 
neering instruments. 

b.  (jleneral  Shop  Equipment:  This  includes  the  cost  of  all  equipment 
specially  provided  for  general  sliops,  such  as  furnaces,  boilers,  gas  producers, 
engines,  electric  generators,  and  other  power  apparatus  used  in  operating 
machinery  in  such  shops;  machine  tools,  cianes,  hoists,  shafting,  belts,  and 
the  like  shop  equipment;  also  such  smithing  equipment  in  general  shops  aa  is 
used  principally  for  other  general  purposes  than  shoeing  horses  and  repairing 
vehicles. 

NoTK. —  Hand  and  other  small  portable  tools  liable  to  be  lost  or  stolen  shall  not 
be  included  herein,  but  portable  tools  and  apparatus  of  special  value  may  be 
charged  to  this  account  and  remain  herein  so  long  as  record  is  kept  of  the  person* 
to  whom  such  tools  and  apparatus  are  issued  and  such  persons  are  made  respon- 
sible  therefor. 

c.  General  Store  Equipment:  This  includes  the  cost  of  all  equipment  of 
general  store  structures,  such  as  movable  counters,  movable  shelving  and 
other  movable  equipment  of  like  nature,  carts,  barrows,  trucks,  etc.,  and  other 
apparatus  and  appliances  used  in  handling  materials  and  supplies. 

Note. —  Counters,  shelving  and  the  lilce  which  are  permanently  attached  to  the 
structure  shall  be  charged  to  account  No.  E121,  "General  Structures,"  and  not  to  this 
account. 

d.  General  Stable  Equipment :  This  includes  the  cost  of  all  equipment  of 
general  stables,  including  horses,  harness,  drays,  wagons,  automobiles  and 
other  vehicles,  equipment  of  shoeing  sliops,.  harness  repair  shops,  vehicle  re- 
pair shops,  etc. 

E131.  Dams,  Canals,  and  Pipe  Lines. 
Charge  to  this  account  the  cost  of  all  dams,  canals,  aqueducts,  and  pipe 
lines  devoted  to  the  utilization  of  water  power  and  the  delivery  of  the  water 
to  the  headgate  of  the  turbine  or  water-wheel ;  also  that  of  all  wasteways 
from  the  outlet  of  the  draft-tube  to  the  point  of  final  discharge.  This  in- 
cludes all  gates,  valves,  and  other  accessories  of  such  dams ;  also  wasteways, 
sluices,  forebays,  grids,  walls,  fences,  etc.,  for  the  protection  of  such  canals 
and  pipe  lines,  and  all  trestles  and  other  supporting  structures;  also  all 
viaducts,  bridges,  foot-bridges,  etc.,  over  and  accessory  to  or  necessitated  by 
such  canals,  aqueducts,  and  pipe  lines. 

E132.  PowEB  Plant  Buildings. 
Charge  to  this  account  the  coat  of  material  used  and  labor  expended  in 
erecting  buildings  to  be  used  for  housing  power  generating  plants.  This  ac- 
count includes  cost  of  excavations,  permanent  foundations,  drainage,  gas  and 
water  pipes  and  connections,  grading  grounds,  and  furniture  and  fi.Ktures 
when  permanently  attached  to  and  made  a  part  of  the  building;  also  the 
cost  of  architects'  plans,  and  of  auperintendence  of  construction. 


Accounts  fob  Electeical  Cokpokations      13 

E141a.  FuBNACEs,  Boilees,  and  Accessories. 

Charge  to  this  account  the  cost  of  all  furnaces,  boilers,  and  boiler  apparatus 
and  accessories  devoted  to  the  production  of  steam  for  use  in  generating 
electric  energy.  This  includes  boilers  and  valves  thereto  attached,  appurtenant 
furnaces  and  grates,  and  flues  leading  to  smokestacks  and  chimneys,  and  the 
specially  provided  foundations  and  settings  of  such  boilers  and  appurtenances; 
also  iron  smokestacks.  It  also  includes  mechanical  stokers  and  other  like 
apparatus  for  regulating  the  supply  of  fuel,  etc.,  feed  and  hot  water  heaters 
and  economizers,  injectors,  filters,  feed  pumps,  blower  engines,  coal  conveyors, 
ash  conveyors,  water  pipes,  steam  traps,  drains,  and  separators,  and  pipes  for 
conducting  steam  from  the  boiler  to  the  engine  or  to  the  gas  producers,  ex- 
haust pipes,  etc.  It  does  not  include  steam  pipes  whose  primary  purpose  is 
the  heating  of  buildings. 

E141b.  Steam  Engines. 

Charge  to  this  account  the  cost  of  all  steam  engines  devoted  to  the  produc- 
tion of  electric  energy.  This  includes  the  specially  provided  foundations  and 
settings  of  such  engines.  The  engine,  whether  reciprocating  or  rotary  (such 
as  steam  turbines),  shall  be  considered  to  include  the  throttle  or  inlet  valve 
and  the  governor;  also  condensers,  air  and  circulating  pumps,  lubricating 
systems,  etc.,  but  not  the  steam  pipe  leading  from  the  boiler,  nor  the  exhaust 
pipe.  Where  the  electric  rot(>r  is  mounted  on  the  engine  shaft,  the  shaft  shall 
be  considered  a  part  of  the  steam  engine  and  the  electric  rotor  thereon  shall 
be  considered  a  part  of  the  electric  equipment. 

E142.  Turbines  ani?  Wateb-wheels. 

Charge  to  this  account  the  cost  of  all  turbines  and  water-wheels  devoted  to 
the  conversion  of  water  power  into  mechanical  power  for  the  production  of 
electric  energy.  This  includes  the  specially  provided  foundations  and  settings 
of  such  engines,  also  tlieir  governors  and  all  other  appurtenant  apparatus 
attached  thereto  from  and  inclusive  of  the  headgates  and  governors  to  (but 
exclusive  of)  the  wasteway.  Where  the  electric  rotor  is  mounted  on  (not 
merely  coupled  to)  the  shaft  of  the  hydraulic  engine,  the  shaft  shall  be  con- 
sidered a  part  of  the  hydraulic  engine  and  the  electric  rotor  thereon  shall  be 
considered  a  part  of  the  electric  equipment. 

E143a.  Gas  Pboducers  and  Accessories. 

Charge  to  this  account  the  cost  of  producers  and  accessories  devoted  to  the 
production  of  gas  for  the  purpose  of  operating  electric  generators,  including 
the  cost  of  specially  provided  foundations  and  settings  for  such  producers 
and  accessories.  This  account  includes  producers,  economizers,  regenerators, 
vaporizers,  steam  injectors,  scrubbers,  exhauster  outfits,  seals,  specially  pro- 
vided boilers  and  pumps,  flues  and  piping,  blower  engines,  pipes  for  the  con- 
duction of  gas  fiom  such  producers  to  holders  and  to  gas  engines,  holders 
for  producer  gas,  exhaust  pipes  from  gas  engines,  etc.  It  does  not  include 
pipfes  whose  primary  purpose'  is  the  warming  of  buildings;  nor  does  it  in- 
clude power  transmission  apparatus,  or  water  pipes,  steam  pipes,  water  pumps, 
or  inspirators. 

El 43b.  Gas  Engines. 

Charge  to  this  account  the  cost  of  all  gas  engines  devoted  to  the  produc- 
tion of  electric  energy,  including  the  specially  provided  foundations  and  set- 
tings of  such  engines.  The  engine  includes  the  inlet  valve,  governor,  and 
ignition  and  starting  apparatus,  but  not  the  pipe  leading  from  the  gas  holder, 


14:         Public  Service  Commission,  Second  District 

nor  the  exhaust  pipe.     Where  the  electric  rotor  is  mounted  on  the  engine 
shaft,  the  shaft  shall  be  considered  a  part  of  the  engine  and  the  electric  rotor 
thereon  shall  be  considered  a  part  of  the  electric  equipment. 
El 44a.  Electric   Generators. 

Charge  to  this  account  the  cost  of  all  electric  generating  apparatus  driven 
by  engines  operated  by  steam,  water,  or  gas;  and  rotaries  and  motor  generat- 
ing sets,  exciters,  etc.,  when  not  installed  in  connection  with  transmission  sys- 
tems. This  includes  the  specially  provided  foundations  and  settings  of  sucV. 
apparatus.  Where  the  electric  rotor  of  such  apparatus  is  mounted  on  the 
sliaft  of  the  steam,  hydraulic,  or  gas  engine,  the  rotor  is  to  be  included 
Iierein,  but  not  the  shaft.  Belts,  countershafts,  and  other  like  interniipdiaries 
between  such  engines  and  the  generators  are  also  to  be  excluded  herefrom. 

Note. —  Regarding  transmission  and  distribution,  see  the  note  to  account  No. 
I01O3,  "Transmission   System".      (See  page   15.) 

E144b.  Accessory  Electric  Power  Equipment. 

Charge  to  this  account  the  cost  of  all  electric  equipment  of  generating 
stations  not  includible  in  the  last  foregoing  account.  This  account  includes 
bus-bars,  regulators,  station  switchboards  and  equipment,  such  as  circuit- 
breakers,  switches,  ammeters,  voltmeters,  wattmeters,  and  the  like,  and  their 
foundations  and  settings;  also  headgate  motors,  pump  motors,  air  com- 
pressor motors,  etc.,  and  special  high-tension  transmission  equipment  at 
power  stations,  such  as  high-tension  bus-bars,  high-tension  switchboards, 
high-tension  switches,  high-tension  current  transformers,  high-tension  light- 
ning arresters,  high-tension  potential  transformers,  high-tension  reactive  coils, 
high-tension  choke  coils,  high-tension  grounding  devices  and  resistances,  high- 
tension  raising  and  lowering  transformers,  etc. 

E145.  Miscellaneous  Power  Plant  Equipment. 

Charge  to  this  account  the  cost  of  all  miscellaneous  equipment  at  power 
plants  which  is  not  includible  in  any  of  the  foregoing  accounts.  This  includes 
such  mechanical  apparatus  as  belts,  pulleys,  hangers,  countershafts,  and  otlier 
apparatus  intermediary  between  the  prime  mover  and  the  electric  generator, 
cranes,  hoists,  etc.,  and  machine  tools  and  such  other  tools  at  power  plantsi 
as  are  proper  to  be  capitalized,  etc. 

Note. —  This  account  should  not  include  any  sub-station  equipment. 
E151.  Sub-station  Buildings. 

Charge  to  this  account  the  cost  of  material  used  and  labor  expended  in 
erecting  buildings  to  be  used  for  power  sub-station  purposes,  including  ex- 
cavations, permanent  foundations,  drainage,  gas  and  water  pipes  and  connec- 
tions, grading  grounds,  and  furniture  and  fixtures  when  permanently  attached 
to  and  made  a  part  of  the  building;  also  the  cost  of  architects'  plans,  and  of 
superintendence  of  construction. 

XoTE. —  No  charge  should  bo  made  to  this  account  in  respect  of  a  power  plant 
building,  even  though  such  building  also  contnlns  sub-station  apparatus. 
El 52.  Sub-station  Equipment. 

Charge  to  this  account  the  cost  of  all  equipment  of  sub-stations.  Such 
equipment  includes  not  only  electric  machinery  and  apparatus,  including 
storage  batteries,  in  sub-stations,  but  also  all  other  fiirniture  and  equipment, 
such  as  furnaces,  boilers,  stoves,  elevators,  etc.,  permanently  assigned  to  such 
stations  but  not  affixed  to  the  structures  thereof.  It  does  not  include  labora- 
tory instruments  and  apparatus  not  permanently  assigned  thereto,  nor  dues 
it  include  tools  only  temporarily  assigned  to  such  stations. 


Accounts  for  Electrical  Cokfokatioj^s  15 

E161.  Poles  and  Fixtures. 

Charge  to  this  account  the  cost  of  towers,  structures,  poles,  cross-arms.  muI 
insulator  pins;  braces,  brackets,  and  other  pole  fixtures;  gujs  and  oilier  siij* 
ports  for  holding  the  towers,  structures,  and  poles  in  position;  and  all  labor 
expended  in  connection  with  the  construction  of  pole  lines  or  structures  for 
carrying  the  transmission  and  distribution  systems. 

E162.  Undergboukd  Conduits. 

Charge  to  this  account  the  cost  of  conduits  required  for  underground  wires 
and  cables,  including  manholes,  ducts  and  pipes,  sewer  connections,  sewer 
traps,  and  all  material  necessary  for  the  completion  of  the  underground  con- 
duit system  devoted   to  the   protection  of  the  transmission   and  distribution 

systems. 

E163.  Transmission  System. 

Charge  to  this  account  the  cost  of  the  transmission  system,  including  cables, 
wires,  insulators,  and  insulating  material. 

Note. —  When  the  electric  current  generated  (or  received  from  another  corpo- 
ration) is  conducted,  eitlier  at  tlie  voltage  of  generation  (or  receipt)  or  at  a 
higher  voltage,  to  a  point  where  it  is  (a)  lowered  in  voltage  by  means  of  step- 
down  transformers,  or  changed  as  to  kind  or  frequency  by  means  of  (b)  motor 
generator  sets,  (c)  rotary  converters,  or  (d)  frequency  changers,  that  portion  of 
the  outside  line  or  conductor  system  antecedent  to  the  said  stepdown  transformers, 
motor  generator  sets,  rotary  converters,  or  frequency  changers,  shall  be  classed  as 
the  Transmission  System  ;  except,  however,  that  primary  wiring  in  lighting  systems 
at  not  to  exceed  4,400  volts,  4-wire,  3-p'.iase,  shall  be  classed  as  a  part  of  the 
Distribution  System.  Tie-lines  between  generating  stations  and  sub-stations  shall 
follow  the  same  rule.  Line  transformei-s  are  not  included  among  the  "  stepdown 
transformers  "   above  mentioned. 

El 64.  Distribution  System. 

Charge  to  this  account  the  cost  of  all  distribution  main  conductors  and 
feeders,  including  the  cost  (in  place)  of  all  cables,  wires,  insulators,  and 
insulating  material. 

This  account   shall  be  subdivided  so  as  to  show  separately  the  following: 

a.  Overhead  Distribution  System; 

b.  Edison  Tube  ISystem,  including  the  cost  in  place  of  all  the  Edison  tube 
system  material,  such  as  junction  boxes,  tubing  material  and  conductors, 
coupling  boxes,  etc.; 

c.  Other  U nderyround  Distribution  System. 

NoTH  A. —  The  amounts  charged  to  the  subdivisions  above  stated  will  be  required 
to  be  separately  reported  in  the  annual  reports  of  the  corporation  to  the  Public 
Service   Commission. 

Note  B. —  For  the  distinction  batween  the  transmission  system  and  the  distribu- 
tion system,  see  the  note  to  account  No.  E1G3,  •'  Transmission  System  ". 

ElGo.  Line  TiJANSFOrmeus  and  Devices. 

Charge  to  this  account  the  cost  of  all  line  transformers  (both  overhead  and 
underground),  pole,  line  lightning  arresters,  transformer  cut-out  boxes,  line 
cut-out  switches,  etc.,  in  the  distribution  system. 

NoTK. —  Upon   tiling  with   the   Public    Service   Commission   a   notice   thereof,   the 
accounting    corporation    may    also    include   in    this   account   the   cost   of   line   trans- 
formers and   devices   temporaiUu  withdrawn   from    service. 
El 66.  Electric  Services. 

Charge  to  this  account  the  cost  of  all  conductors  (and  appurtenant  in- 
sulation, ducts,  and  supports)  connecting  the  distribution  mains  with  electric 
apparatus  and  appliiuces  in  the  possession  of  consumers. 

Note. —  Cost  of  renewing  or  modifying  services  shall  not  be  charged  to  this 
account. 


IG  Public  Service  Commission,  Second  District 

El 67a.  Electric  Meters. 

Charge  to  this  account  the  cost  of  meters  used  in  determining  the  amount 
of  electric  energy  delivered  to  the  several  consumers  to  whom  it  is  supplied. 

Note  A. —  Cost  of  setting,  removiag,  or  re-setting  such  meters  shall  not  be  charged 
to   this  account. 

Note  B. —  Upon  filing  with  the  Public  Service  Commission  a  notice  thereof,  the 
accounting  corporation  may  also  include  in  this  account  the  cost  of  consumers' 
meters  temporarily  withdrawn  from  service. 

El 67b.  Elect«ic  Meter  Installation. 

Charge  to  this  account  the  cost  of  the  first  setting  of  meters  for  determining 
the  amount  of  electric  energy  delivered  upon  the  premises  of  consumers,  in 
case  it  is  the  policy  of  the  corporation  to  capitalize  the  cost  of  such  setting. 

Note  A. —  Cost  of  removing  such  meters  and  of  setting  other  meters  substituted 
for  them  shall  not  be  charged  to  this  account  but  to  account  No.  E533,  "  Setting  and 
Removing  Meters  and  Transformers".      (See  page  41). 

Note  B. —  This  account  must  not  Include  at  any  time  the  cost  of  Installation  of 
a  greater  number  of  consumers'  meters  than  are  actually  in  service. 

E171.  Municipal  Street  Lighting  System    (Electric). 

Charge  to  this  account  the  cost  (in  place)  of  all  property  of  the  company 
in  poles,  cross-arms,  pins,  braces,  insulators,  etc.,  arc  circuits,  lamps,  and  out- 
fits and  suspensions,  specially  provided  for  the  municipal  street  lighting 
system.  Such  cost  includes  cost  of  material,  transportation,  setting  poles, 
etc.,  and  restoring  the  surface  of  the  street  to  the  condition  required  by  the 
municipality.  This  account  does  not  include  any  part  of  the  general  dis- 
tribution system,  but  only  things  in  the  utilization  plant  beyond  the  service 
and  devoted  to  the  municipal  service. 

Note  A. —  Where  the  municipality  requires  for  its  special  benefit  the  extension  of 
mains  and  services  for  street  lighting,  such  extensions  may,  so  long  as  used  solely 
for  street  lighting,  be  charged  to  this  account,  provided  a  full  description  of  the 
extensions  so  charged  and  the  amounts  charged  in  respect  thereof  be  filed  with 
the  Public  Service  Commission  on  or  before  the  date  when  the  entry  thereof  Is 
made  upon  the  books  of  the  corporation. 

Note  B. —  If  the  corporation  uses  in  its  street  lighting  system  the  same  type 
of  arc  lamps  that  it  uses  in  its  commercial  lighting  system,  and  uses  them  inter* 
changeably,  it  will  be  permitted,  upon  filing  with  the  Public  Service  Commission 
a  notice  thereof,  to  charge  the  cost  of  all  arc  lamps  in  its  street  lighting  system 
to  account  No.  EI72,  "  Commercial  Arc  Lamps  ". 

E172.  Commercial  Arc  Lamps. 

Charge  to  this  account  the  cost  of  all  property  of  the  company  in  commer- 
cial arc  lamps  supplied  to  consumers  (including  municipal  buildings)  where 
such  lamps  have  an  expectancy  of  life  in  service  of  more  than  one  year. 

Note  A. —  Meters  supplied  to  consumers  are  provided  for  in  a  foregoing  account 
and  should  not  be  Included  herein. 

Note  B. —  Upon  filing  with  the  Public  Service  Commission  a  notice  thereof,  the 
accounting  corporation  mny  also  include  in  this  account  the  cost  of  arc  lamps 
temporarUy  withdrawn  from  service. 

E173.  Glower  Lamps. 

Charge  to  this  account  the  cost  of  all  property  of  the  company  in  electric 
glower  lamps  supplied  to -consumers  (including  municipal  buildings)  where 
such  lamps  have  an  expectancy  of  life  in  service  of  more  than  one  year. 

Note  A. —  Meters  supplied  to  consumers  are  provided  for  In  a  foregoing  account 
and  should  not  be  Included  herein. 

Note  B.— This  account  is  restricted  to  long-life  Incandescent,  or  glower  lampi 
such  as  the  Nerust.  and  does  not  Include  the  ordinary  carbon  filamont  Incandesceut 
tampa.     Short-life  incandescent  lamps   (i.  e.,  those  having  aa  expectancy  of  life  of 


ACCOUKTS    FOK    ELECTltiCAL    CoKPOBATIONS  17 

not  more  than  one  year)  shall  be  charged  to  the  appropriate  operating  expense 
account  when  issued  for  use,  and  prior  to  that  time  they  shall  be  carried  iu  the 
appropriate  •'Materials  and   Supplies"  account. 

Note  C. —  L'pon  filing  with  the  Public  Service  Commission  a  notice  thereof,  the 
accounting  corporation  may  also  include  in  this  account  the  cost  of  long-life  in- 
candescent   lamps    temporarily   withdrawn    from    service. 

E174.  Electric  Motoes  and  Heaters. 

Charge  to  this  account  the  cost  of  all  property  of  the  company  in  electric 
motors  and  heaters  leased  to  consumers  (including  municipalities),  and  of  all 
appurtenances  thereof,  such  as  fans,  etc. 

NoTi:. —  Upon  filing  with  the  Public  Service  Commission  a  notice  thereof,  the  ac- 
counting corporation  may  also  Include  in  this  account  the  cost  of  electric  motors 
and   heaters    temporarily   withdrawn    from    service. 

E175.  Electric  Tools  and  Implements. 
Charge  to  this  account  the  cost  of  all  tools  and  implements  coming  within 
the   scope  of  the   definition    (see   note,   page   5)    of  electric   fixed  capital   and 
not  covsred  by  any  of  the  foregoing  equipment  accounts, 

E176.  Electric  Laroratory  Equipment. 

Charge  to  this  account  the  cost  of  all  testing  apparatus  and  laboratory 
equipment  not  elsewhere  provided  for. 

Xdtk. —  This  account  includes  all  electric  testing  apparatus  and  equipment  in 
laboratories.  It  does  not  include  such  instruments  as  are  permanently  assigned  to 
generating  stations,  sub-stations,  and  the  like,  such  as  station  ammeters,  volt- 
meters, and  wattmeters,  etc. 

E177.  Other  Tangible  Electric  Capital. 

Charge  to  this  account  tlie  cost  of  all  tangible  electric  capital  not  elsewhere 

provided  for. 

E281.  Engineering  and  Superintendence. 

Charge  to  this  account  all  expenditures  for  services  of  engineers,  drafts- 
men, and  superintendents  employed  on  preliminary  and  construction  work, 
and  all  expenses  incident  to  tlie  work,  when  such  disbursements  can  not  be 
assigned  to  specific  construction. 

Note. —  When  employees  enumerated  above  are  engaged  m  work  not  chargeable 
to  constriictlon,  their  pay  and  expenses  shall  be  charged  to  the  specific  work  on 
which  engaged. 

E2S2.  Law  Expenditures  During  Construction. 

Charge  to  this  account  general  expenditures  of  the  following  nature,  in- 
curred in  connection  with  the  construction  of  an  electric  plant,  namely:  the 
pay  ond  expenses  of  all  counsel,  solicitors,  and  attorneys,  their  clerks  and 
attendants,  and  expenses  of  their  oflice5= ;  printing  briefs,  legal  forms,  testi- 
mony, reports,  etc.;  payments  to  arbitrators  for  the  settlement  of  disputed 
questions;  costs  of  suit  and  payments  of  special  fees,  notarial  fees,  and  witness 
tees;  and  expenses  connected  with  taking  depositions;  also  all  legal  and  court 
expenses. 

When  any  of  the  expenditures  above  enumerated  can  be  charged  directly  to 
the  account  for  which  incurred,  they  shall  be  so  charged  and  not  to  this  ac- 
count. Expenditures  in  connection  with  the  acquisition  of  the  right  of  way 
or  other  land  shall  be  charged  to  account  No.  EllO,  "Land  Devoted  to 
Electric  Operations  ".  Law  expenditures  in  connection  with  the  organization 
of  the  corporation  shall  be  charged  to  account  No.  101,  "  Organization  ". 
E283.  Injuries  During  Construction. 

Charge  to  this  account  all  expenditures  incident  to  injuries  to  persons  when 
caused  directly   in  connection   with  construction  of  electric  plant   and   equip 


18         Public  Service  Commission,  Second  Distkiot 

ment ;  proportion  of  salaries  and  expenses  of  physicians  and  surgeons ;  nursing 
and  hospital  attendance,  medical  and  surgical  supplies,  artificial  limbs,  rail- 
road and  carnage  fares  for  conveying  injured  persons  and  attendants;  funeral 
expenses  (including  payments  to  undertakers)  ;  proportion  of  pay  and  ex- 
penses of  claim  adjusters  and  their  clerks,  and  pay  and  expenses  of  employees 
and  others  called  in  consultation  in  relation  to  the  adjustment  of  claims 
coming  under  this  head;  also  witness  fees  and  amount  of  final  judgments. 

E284.  Taxes  During  Constbuction. 
Charge  to  this  account  all  taxes  and  assessments  levied  and  paid  on  prop- 
erty belonging  to  the  corporation  while  under  construction  and  before  the 
plant  is  opened  for  commercial  operation,  except  special  taxes  assessed  for 
street  and  other  improvements,  such  as  grading,  sewering,  curbing,  gutterin<;. 
paving,  sidewalks,  etc.,  which  shall  be  charged  to  the  account  to  which  the 
property  benefited  is  charged. 

E285.  Miscellaneous  Construction  Expenditures. 

Charge  to  this  account  the  salaries  and  expenses  of  executive  and  general 
officers  of  an  electric  plant  under  construction;  clerks  in  general  offices  en- 
gaged on  construction  accounts  or  work;  rent  and  repair  of  general  offices 
when  rented,  with  the  office  expenses;  insurance  during  construction;  also  all 
construction  and  equipment  items  of  a  special  and  incidental  nature  which 
can  not  properly  bo  charged  to  any  other  account  in  this  classification. 

Note  A. —  This  account  may  include  a  suitable  proportion  of  store  expenses  when 
such  expenses  are  not  assignable  to  specific  materials. 

Note  B. —  This  account  shall  not  include  any  costs  of  organization,  or  any  costs 
or  discounts  connected  with  the  issue  and  disposal  of  stocks,  funded  debt,  or  other 
securities,  and  commercial  paper. 

E286.  Interest  During  Construction. 

Charge  to  this  account  the  interest  accrued  upon  all  moneys  (and  credits 
available  upon  demand)  acquired  for  use  in  connection  with  the  construction 
and  equipment  of  the  property  from  the  time  of  such  acquisition  until  the 
construction  is  ready  for  use.  Interest  receivable  accrued  upon  such  moneys 
and  credits  shall  be  credited  to  this  account.  To  this  account  shall  also  be 
credited  discounts  realized  through  prompt  payment  of  bills  for  materials 
and  supplies  used  in  construction  unless  such  discounts  are  credited  to  the 
particular  bills. 

Olio.  Land  in  Other  Departments. 

Charge  to  this  account  the  cost  of  the  corporation's  interests  in  land 
(exclusive  of  improvements  thereon)  devoted  to  operations  other  than  electric 
operations,  gas  operations,  railroad  operations,  and  street  railroad  operations.' 
Such  cost  includes,  when  assumed  or  when  paid  by  the  purchaser  in  its  own 
behalf,  cost  of  registration  of  title,  cost  of  examination  of  title,  conveyancer's 
and  notary's  fees,  purchasing  agent's  commissions  or  fees,  or  proportion  of 
purchasing  agent's  salary,  taxes  accrued  to  date  of  transfer  of  title,  ai:d  all 
liens  upon  the  title  acquired.     If  at  the  time  of  acquisition  of  such  interest 


>  Note. —  Gas  Capital,  Railroad  Capital,  and  Street  Railroad  Capital. —  For 
the  accounts  to  which  shall  be  charged  the  cost  of  capital  devoted  to  gas  operations, 
see  the  Uniform  System  of  Accounts  for  Gas  Corporations ;  for  steam  railroad 
operations,  see  the  Uniform  System  of  Accounts  for  Expenditures  for  Uoad  and 
Equipment,  etc.,  as  established  for  Steam  Railroad  Corporations  by  the  Public 
Service  Commission ;  and  for  electric  railroad  and  street  railroad  operations,  set 
the   Uniform   System   of   Accounts  for   Street   Railroad   Corporations. 


Accounts  for  Electric ai.  Corporations      19 

in  lands  it  extends  to  b*iildings  or  other  improvements  thereon,  which  im- 
provements are  devoted  by  tlie  corporation  to  operations  other  than  the  four 
classes  above  mentioned,  and  the  contract  of  acquisition  does  not  determine 
the  price  of  such  improvements,  they  shall  be  appraised  at  their  fair  cash 
value,  and  such  appraised  value  shall  be  charged  to  tiie  appropriate  accounts 
and  excluded  from  the  account  "  Land  in  Other  Departments  ".  If  such  im- 
provements ar"^  held  as  investments,  the  cost  (or  appraised  value  at  time  of 
acquisition  of  title  if  the  cost  to  the  corporation  is  not  determined  in  the 
contract  of  acquisition)  shall  be  charged  to  the  appropriate  investment  ac- 
count. If  the  improvements  are  removed  or  wrecked,  the  salvage  (less  the 
cost  of  removal  or  wreckage)  shall  be  excluded  from  the  account  "  Land  in 
Other  Departments  ". 

O102.  Franchises  in  Other  Departments. 
Charge  to  this  account  "the  amount  (exclusive  of  any  tax  or  annual 
charge)  actually  paid  to  the  State  or  to  a  political  subdivision  thereof  as 
the  consideration  for  the  grant  of  such  franchise  or  right "  as  is  necessary 
to  the  conduct  of  the  corporation's  operations  other  than  electric,  gas,  rail- 
road, and  street  railroad. 

O103.  Patent-rights  in  Other  Departments. 

Charge  to  this  account  the  cost  of  all  rights  (having  a  life  of  more  than 
one  year  from  the  date  when  placed  in  service)  acquired  by  the  corporation 
in  or  under  valid  patents  granted  by  the  United  States  to  inventors  for  in- 
ventions and  discoveries  which  are  necessary  to  the  economical  conduct  of 
the  corporation's  operations  other  than  electric,  gas,  railroad,  and  street  rail- 
road. 

O104.  Other  Intangible  Capital  in  Other  Departments. 

Charge  to  this  account  the  cost  of  all  property  of  the  corporation  coming 
within  the  definition  of  intangible  capital  devoted  to  its  operations  other 
than  electric,  gas,  railroad,  and  street  railroad,  and  not  includible  under 
any  of  the  foregoing  accounts. 

O120.  Tangible  Capital  in   Other  Departments. 

Charge  to  this  account  the  cost  of  all  property  of  the  corporation  coming 
within  the  definition  of  tangible  capital  devoted  to  its  operations  other  than 
electric,  gas,  railroad,  and  street  railroad. 

25.  Floating  Capital  divided  into  two  groups. —  Floating  capital  is  divided 
into  two  great  groups,  of  which  the  first  is  herein  called  "Materials  and  Sup- 
plies," and  the  second,  "  Current  Assets  ". 

26.  Definitions  of  Floating  Capital  accounts. —  In  the  following  definitions 
the  letters  and  figures  prefixed  to  the  titles  of  the  accounts  are  no  part  of 
the  titles  and  are  inserted  merely  for  convenience  of  reference: 

ElO.  Materials  and  Supplies. 
Charge  to  this  account  the  cost  (including  transportation)  of  all  materials 
and  supplies  acquired  by  the  corporation,  regardless  of  whetiier  the  same 
are  intended  to  be  consumed  in  constryction  or  in  operation,  or  later  to  be 
sold.  Where  discounts  recovered  through  prompt  payment  are  not  credited 
to  the  particular  bills,  the  cost  at  which  such  materials  and  supplies  shall 
be  charged  shall  be  the  invoice  cost,  and  any  discounts  recovered  throu<»h 
prompt  payment  of  bills  for  such  materials  and  supplies  shall  be  credited  to 


20  Public  Seevice  Commission,  Second  Distsict 

account  No.  E28G,  "  Interest  During  Construction,"  or  to  account  No.  E852, 
•'  Undistributed  Adjustments  —  Balance,"  according  as  such  materials  and 
supplies  are  intended  for  construction  or  for  operation. 

The  scrap  value  of  things  retired  from  service  shall  be  charged  to  an  appro- 
priate sub-account  in  this  account  while  such  things  remain  the  property  of 
the  corporation.  If  such  scrap  value  is  not  known  and  can  not  readily  be 
determined  it  shall  be  estimated,  and  errors  in  such  estimates  when  deter- 
mined shall  be  adjusted  through  the  accounts  involved  if  during  the  year  in 
whJch  the  estimates  were  made;  if  later,  then  through  the  "  Corporate  Surplus 
or  Deficit "  account. 

Inventories  of  materials  and  supplies  shall  be  taken  at  least  annually,  and 
any  shortages  or  overages  disclosed  by  such  inventories  shall  be  credited  or 
debited  to  this  account  and  debited  or  credited  to  the  operating  expense  ac- 
count No.  E852,  "Undistributed  Adjustments  —  Balance,"  in  case  thoy  can 
not  be  assigned  to  specific  accounts.  Shortages  may,  however,  be  chargetl 
tlirectly  to  "  Corporate  Surplus  or  Deficit ".  Where  such  materials  and  sup 
plies  have  been  used  in  construction,  a  suitable  proportion  of  such  shortage.* 
or  overages  may  be  debited  or  credited  to  account  No.  E285,  "  Miscellaneous 
Construction  Expenditures  ". 

XoTK. —  It  is  not  required  that  the  transportation  element  of  cost  shall  be 
iissiKDod  with  a  greater  degree  of  accuracy  than  to  the  nearest  cent  per  unit  of 
iii.n ferial  or  supply.  Where  a  single  transportation  Item  covers  a  multitude  of 
tilings  the  portion  of  the  expense  not  assigned  to  specific  things  should  be  charged 
to  the  same  account  that  store  expenses  are  charged  to. 

1.  Cash. 
Charge  to  this  account  all  money  coming  into  the  possession  of  the  corpora- 
tion and  in  which  the  corporation  has  the  beneficial  interest.  This  includes 
coin  of  the  United  States,  United  States  treasury  notes,  gold  and  silver  cer- 
tificates and  greenbacks,  and  bank  bills  payable  to  bearer.  Also  charge  to  it 
all  bank  credits,  checks  and  drafts  receivable,  subject  to  satisfaction  or  . 
transfer  upon  demand  (whether  payable  to  bearer  or  to  order).  Credit  thi? 
account  with  all  cash  ^disbursements  of  the  corporation. 

2.  Bills  Receivable.  :  .* 

Charge  to  this  account  the  cost  of  all  bills  receivable  (except  as  below 
provided)  which  are  the  property  of  the  corporation  and  upon  which  solvent 
concerns  are  liable  or  which  are  sufficiently  secured  to  be  considered  good. 
This  account  includes  demand  notes,  drafts,  etc.,  issued  by  others  than  banks, 
and  time  notes,  drafts,  etc.,  by  whomever  issued.  This  account  does  not  in- 
clude investments  (for  which  see  page  21)  ;  nor  does  it  include  interest 
coupons. 

3.  Accounts  Receivable. 

Charge  to  this  account  all  amounts  owing  to  the  corporation  upon  ac- 
counts with  solvent  concerns  (other  than  banks)  ;  also  the  cost  of  all  accounts 
and  claims  upon  which  responsibility  is  acknowledged  by  solvent  concerns  or 
which  are  sufficiently  secured  to  be  considered  good,  and  of  all  judj^nientn 
against  solvent  concerns  where  the  judgment  is  not  appealable  or  suspended 
through  appeal.     This  account  does  not  include  negotfables. 

4.  Intebest  and  Dividends  Reckivable. 
Whenever  the  income  account  is  stated  t!ie  ap])ro|)riatc  sub-.nccount  therein 
shall  be  credited,  and  this   account  shall  be  chmged   witli   all   accrued   but 


Accounts  fob  Electrical  Cokpoeations      21 

not  yet  collected  interest  upon  all  commercial  paper  and  accounts  considered 
collectible  held  by  or  for  the  benefit  of  the  corporation;  also  all  divideiuls 
declared  or  guaranteed  by  solvent  concerns  but  not  yet  collected,  the  right  to 
which  is  in  the  corporation. 

5.  Otheb  Current  Assets, 
Charge  to  this  account  the  cost  of  all  current  assets  of  the  corporation  which 
are  not  includible  under  any  of  the  last  four  foregoing  accounts.  By  current 
assets  are  meant  only  those  things  which  are  readily  convertible  into  money 
and  which  are  held  with  the  intent  of  being  presently  converted  into  money 
and  not  as  investments. 

27.  Investments  defined. —  By  Investments,  as  here  used,  are  meant  all  prop- 
erties acquired  not  for  use  in  present  operations,  but  as  a  means  of  obtaining 
or  exercising  control  over  other  corporations,  or  for  income  to  be  derived 
from  them,  or  for  a  rise  in  value,  or  for  devotion  to  future  operations  at  a 
time  when  it  seems  probable  that  they  can  not  be  so  advantageously  acquired 
as  at  the  time  of  actual  acquisition.  By  hound  investments  are  meant  those 
held  subject  to  a  lien  of  some  character;  by  free  investments  are  meant  tnose 
held  free  of  all  liens. 

300.  Investments. 

The  cost  of  the  corporation's  title  to  any  property  held  as  an  investment 
shall  be  charged  to  an  account  entitled  "  Investments ". 

Note. —  In  the  annual  reports  to  be  made  to  the  Public  Service  Commission  by 
the  corporations  and  other  persons  engaged  in  electric  operations,  investments, 
whether  bound  or  free,  will  be  required  to  be  classified  with  at  least  the  following 
detail : 

Bound  investments  will  be  required  to  be  divided  into  the  three  classes :  "  Mort- 
gaged or  Pledged  Investments,"  "  Contractual  Fund  Investments,"  and  "  Other 
Bound  Investments ".  Each  of  these  three  classes,  and  the  class  "  Fi'ee  Invest- 
ments," will  be  required  to  be  subdivided  into  the  following :  Funded  Debt  of  Con- 
trolling Corporations.  Funded  Debt  of  Affiliated  Corporations,  Funded  Debt  of  Con- 
trolled Corporations,  Stocks  of  Controlling  Corporations,  Stocks  of  Affiliated  Cor- 
porations, Stocks  of  Controlled  Corporations,  Advances  to  Controlled  Corporations, 
Funded  Debt  of  Other  Corporations,  Stocks  of  Other  Corporations,  Land,  Improve- 
ments on  Land,  and  Other  Investments. 

28.  Special  Deposits  defined. —  By  Special  Deposits,  as  here  used,  are  meant 
amounts  of  money  and  bank  credits  in  the  hands  of  fiscal  and  other  agents  of 
the  corporation  for  the  payment  of  coupons,  dividends,  or  other  special 
purposes.  Credits  at  banks  subject  to  check  of  the  corporation  or  its  agents 
for  general  purposes,  deposits  at  banks  whether  withdrawable  at  pleasure 
or  after  a  specified  time,  amounts  of  money  in  safety  deposit  vaults,  etc.,  so 
long  as  they  are  available  for  general  purposes  of  the  corporation,  shall  be 
excluded  herefrom. 

311.  Coupon  Special  Deposits. 
Charge  to  this  account  all  moneys  and  bank  credits  specially  deposited  in 
the  hands  of  fiscal  agents  or  other  agents  of  the  corporation  for  the  payment 
of  interest  coupons  when  presented.  Such  coupons  when  paid  from  such 
deposits  shall  be  credited  to  this  account  and  charged  to  the  appropriate 
matured  interest  account.  Payments  to  trustees  (or  other  agents)  of  the 
holders  of  bonds  or  other  securities  of  the  interest  accrued  thereon  which  op- 
erate under  the  terms  of  the  securities  (or  of  mortgages  support in;^  such 
securities)  as  a  release  of  the  paying  corporation  from  further  liability  for 
such  interest  shall  not  be  charged  to  this  account,  but  to  the  appropriate 
"  Interest  Accrued  "  account. 


22  Public  Seevice  Commission,  Second  Distbict 

312.  Dividend  Special  Deposits. 

Charge  to  this  account  all  moneys  and  bank  credits  specially  deposited  in 
the  hands  of  fiscal  agents  or  other  agents  of  the  corporation  for  the  payment 
of  dividends  upon  the  corporation's  stocks.  Such  dividends  when  paid  from 
such  deposits  shall  be  credited  to  this  account  and  charged  to  the  appropriate 
dividend  account. 

313.  Other  Special  Deposits. 

Charge  to  this  account  all  moneys  and  bank  credits  deposited  in  the  hands 
of  fiscal  agents  or  other  agents  of  the  corporation  for  other  special  purposes 
than  the  payment  of  interest  coupons  and  dividends.  Charges  to  this  account 
shall  specify  the  purpose  for  which  the  deposit  is  made.  When  such  purposes 
are  satisfied  this  account  shall  be  credited  with  the  amount  specially  deposited 
to  provide  such  satisfaction. 

29.  Prepayments. —  When  pa3'ments  for  taxes,  insurance,  rents,  and  the  like 
are  made  in  advance  of  the  actual  accrual  thereof,  the  amount  of  the  advance 
payment  shall  be  charged  to  the  appropriate  account  in  this  group.  As  such 
taxes,  etc.,  accrue,  the  appropriate  prepayment  account  shall  be  credited  and 
the  appropriate  expense  or  other  income  account  shall  be  charged. 

Note. —  By  the  accrual  of  taxes,  Insurance,  rents,  etc.,  is  meant  their  accumula- 
tion when  considered  as  spread  uniformly  over  the  period  to  which  they  apply. 
Thus,  if  the  rent  fixed  by  contract  of  lease  for  a  certain  property  is  $600  for  a 
calendar  year,  this  accrues  at  the  rate  of  $50  each  month  (unless  it  is  desired  to 
base  the  accrual  on  days,  when  of  course  the  varying  lengths  of  the  months  would 
require  to  be  consioered),  regardless  of  the  actual  times  when  the  rent  matures; 
$50  should  thus  (if  the  rent  has  been  prepaid)  be  credited  each  month  to  the 
account  "  Prepaid  Rents,"  and  concurrently  charged  to  the  appropriate  account 
In  the  "  Income  "  account.     Similarly  in  the  case  of  other  prepayments. 

321.  Prepaid  Taxes. 

When  taxes  are  paid  in  advance  of  their  accrual,  the  amount  prepaid  shall 
be  charged  to  this  account.  As  the  taxes  thus  prepaid  accrue,  they  shall  be 
credited  at  monthly  intervals  to  this  account  and  charged  to  the  appropriate 
taxes  account.  This  account  must  not  include  any  so  called  taxes,  like  water 
taxes,  drainage  taxes,  fire  taxes,  etc.,  which  are  payments  for  special  benefits 
received.  Such  payments  for  special  benefits,  where  finally  chargeable  to 
operating  expenses,  must,  when  prepaid,  be  charged  to  account  No.  324,  "  Other 
Prepayments  ". 

322.  Prepaid  Insurance. 

When  premiums  on  insurance  policies  are  paid  in  advance  of  their  accrual, 
the  amoimt  prepaid  (whether  paid  in  cash  or  by  the  issue  of  notes  or  other 
negotiable  paper)  shall  be  charged  to  this  account.  As  such  premiums  accrue 
they  shall  be  credited  at  monthly  intervals  to  this  account  and  charged  to  the 
appropriate  expense  account. 

323.  Prepaid  Rents. 

When  rents  are  paid  in  advance  of  the  enjoyment  of  the  term,  the  amount 
prepaid  (whether  paid  in  cash  or  by  the  issue  of  notes  or  other  negotiable 
paper)  shall  be  charged  to  this  account.  As  the  term  is  consumed,  this 
account  shall  be  credited  at  monthly  intervals  and  the  appropriate  rent 
account  in  the  income  account  shall  be  charged. 

324.  Other  Prepayments. 

When  prepayments  are  made  for  any  other  thing  than  taxes,  insurance,  and 
rents,  above  provided  for,  such  prepayments  shall  be  charged  to  this  account; 


Accounts  fob  Electbical  Cobpokations      23 

and  as  the  purpose  of  the  prepayment  is  satisfied,  proportionate  amounts 
shall  be  credited  quarterly  to  this  account  and  charged  to  the  appropriate 
•  expense  or  income  account. 

30.  Suspense. —  When  any  expenditure  is  made,  the  appropriate  disposition 
of  which  is  not  yet  determinable,  or  when  any  loss  occurs  which  under  the 
rules  of  the  Public  Service  Commission  may  be  spread  over  a  period  of  time, 
or  when  any  debit  made  for  any  other  reason  may  be  amortized  through 
charges  made  to  expense  or  other  income  accounts  at  intervals  over  a  period 
of  time,  such  expenditure,  loss,  or  other  debit  shall,  except  as  herein  other- 
wise directed,  be  charged  to  an  appropriate  account  in  this  group  of  accounts. 

Note. —  Bj  "  amortization  "  of  any  charge  or  credit  is  meant  its  gradual  ex- 
tinction. Tiie  word  is  broader  than  the  word  "  depreciation,"  since  the  latter  is 
restricted  ordinarily  to  taugible  property.  The  word  "  depreciation "  also  imports 
more  of  the  idea  of  fluctuating  value  and  is  complicated  somewhat  with  the  question 
of  cost  of  replacement  at  market  prices.  Because  it  is  considered  unnecessary  in 
connection  with  the  gradual  consumption  or  expiration  of  life  of  capital  to  con- 
sider the  question  of  cost  of  replacement  until  the  replacement  is  actually  made,  at 
which  time  the  cost  of  replacement  is  duly  charged  to  the  appropriate  account, 
and  because  provision  is  necessary  for  the  gradual  extinction  of  certain  charges 
(such  as  those  for  some  Itlnds  of  capital,  those  for  extraordinary  casualties,  for 
discount  ou  debt,  etc.),  to  which  the  term  "depreciation"  does  not  well  apply,  it 
is  considered  advisable  to  use  the  term  "  amortization  "  in  connection  with  the 
extinction  of  such  charges,  and  of  certain  corresponding  credits,  such  as  premiums 
on   debt  outstanding. 

331.  Unamortized  Debt  Discount  and  Expense. 

When  funded  debt  securities  and  other  evidences  of  indebtedness  are  dis- 
posed of  for  a  consideration  whose  cash  value  is  less  than  the  sum  of  the  par 
value  of  the  securities  or  other  evidences  of  indebtedness  and  the  interest 
thereon  accrued  at  the  time  the  transfer  takes  place,  the  excess  of  such  sum 
of  the  par  value  and  accrued  interest  over  the  cash  value  of  the  consideratioii 
received  shall  be  charged  to  this  account.  To  this  account  shall  also  be 
charged  all  expense  connected  with  the  issue  and  sale  of  evidences  of  debt, 
such  as  fees  for  drafting  mortgages  and  trust  deeds,  fees  and  taxes  for  record 
ing  mortgages  and  trust  deeds,  cost  of  engraving  and  printing  bonds,  certifi 
cates  of  indebtedness,  and  other  commercial  paper  having  a  life  of  more  than 
one  year,  fees  paid  trustees  provided  for  in  mortgages  and  trust  deeds,  fees 
and  commissions  paid  underwriters  and  brokers  for  marketing  such  evidences 
of  debt,  and  other  like  expense.  At  or  before  the  close  of  each  fiscal  period 
thereafter,  a  proportion  of  such  discount  and  expense  based  upon  the  life  of 
the  security  to  maturity  shall  be  credited  to  this  account  and  charged  t<» 
account  No.  928,  "Amortization  of  Debt  Discount  and  Expense  ".  Such  dis- 
count and  expense  may,  if  desired,  be  amortized  more  rapidly  through  charges 
of  all  or  any  part  of  it,  either  at  the  time  of  issue  or  later,  .o  the  account 
"  Other   Deductions  from   Surplus  ". 

332.  Other  Suspense. 

To  this  account  shall  be  made  all  debits  not  elsewhere  provided  for  and 
the  proper  final  disposition  of  which  is  imcertain.  This  will  include  all  such 
matters  as  expense  of  preliminary  surveys,  plans,  investigations,  etc.,  made 
for  determining  the  feasibility  of  projects  under  contemplation.  Should  ajiy 
such  project  later  be  carried  to  completion,  such  amounts  shall  be  credited 
to  this  account  and  charged  to  the  proper  capital  account;  should  it  be 
abandoned,  such  amounts  shall  be  charged  to  "  Corporate  Surplus  or  Deficit ". 


24         Public  Service  Commission,  Second  District 

When  the  proper  disposition  of  any  matter  charged  to  this  account  is  deter- 
mined, it  shall  be  credited  to  this  account  and  charged  to  the  appropriate 
account. 

31.  Securities  Actually  Issued  and  Later  Re-acquired, —  For  the  case  of 
securities  actually  issued  by  the  corporation  and  later  re-acquired  by  it,  the 
following  account  is  provided: 

340.  Re-acquired  Securities. 
When  securities,  whetlier  funded  debt  or  stocks,  have  been  actually  issue<! 
to  bona  fide  holders  for  value  (or  after  such  issue  by  another  corporation 
have  been  assumed  by  the  accounting  corporation),  and  after,  such  issue  (or 
assumption)  have  been  acquired  by  the  corporation  under  circumstances  which 
require  that  they  shall  not  be  treated  as  paid  or  retired,  they  shall  be 
charged  at  face  values  to  this  account. 

32.  Debt  defined. — The  word  debt,  as  here  used,  covers  all  absolute  obliga- 
tions to  pay  money  at  a  definite  time  or  times,  or  at  a  time  or  times  which 
are  capable  of  being  made  definite  by  demand  or  other  act  of  the  creditor 
It  does  not  cover  contingent  obligations,  such  as  obligations  to  pay  rent  for 
future  enjoyment  of  the  term,  liabilities  of  indorsers  upon  paper  not  yet 
defaulted,  etc. 

Debt  is  divided  into  Funded  Debt  and  Unfunded  Debt. 

33.  Funded  Debt  defined. —  Funded  Debt  comprises  all  debt  which  by  the 
terms  of  its  creation  does  not  mature  until  more  than  one  year  after  date  of 
creation. 

34.  Unfunded  Debt  defined. —  Unfunded  Debt  comprises  all  debt  which  by 
the  terms  of  its  creation  matures  one  year  or  less  after  the  date  of  creation 
or  after  demand. 

35.  Funded  Debt  accounts. —  Funded  debt  shall  be  divided  in  the  accounts 
into  classes,  such  classes  being  determined  by  the  four  characteristics:  (1) 
mortgage  or  other  lien  or  security  therefor,  (2)  rate  of  interest,  (3)  interest 
dates,  and  (4)  date  of  maturity.  A  separate  sub-account  shall  be  raised 
for  eacli  such  class  of  funded  debt,  and  no  two  amounts  of  debt  not  agreeing 
in  respect  of  all  four  of  tlie  characteristics  above  named  sliall  be  included  in 
the  same  sub-account.  The  title  of  each  sub-account  of  funded  debt  shall 
express  the  four  characteristics  above  stated,  that  is  to  say:  mortgage  or 
other  lien  or  security,  rate  of  interest,  dates  of  maturity  of  interest,  and 
date  of  maturity  of  principal;  as  e.  g.,  "  First  Mortgage  5%  QF  10,  Aug.  10, 
1028,"  which  means  funded  debt  secured  by  the  company's  first  mortga'»e, 
bearing  interest  at  the  rate  of  5  per  cent,  per  annum,  interest  maturing 
quarterly  on  February  10th,  May  10th,  August  10th,  and  November  10th  of 
each  year,  principal  maturing  August  10,  1928. 

Where  any  portion  of  the  funded  debt  rests  only  on  the  general  credit  of 
the  corporation  and  is  not  specially  secured  or  supported  by  lien  of  any 
character,  it  shall  for  the  purposes  of  these  accounts  be  known  as  a  "  deben- 
ture ".  "  Debentures  "  thus  include  promissory  notes  unsecured  by  mortga<»e 
or  other  lien,  also  those  securities  commonly  known  as  "  plain  bonds  ". 

To  the  appropriate  sub-account  in  "  Funded  Debt "  shall  be  credited  when 
issued  the  par  value  of  the  amount  of  evidences  of  funded  indebtedness  issued. 
The  entry  shall  show  not  only  the  amount  issued  but  the  purpose  for  wli*.ch 
is^^ued,  and  shall  make  intelligible  reference  to  the  book,  page,  and  accoiii.t 


Accounts  for  Electeical  Coepokations      25 

whereon  are  shown  any  discounts  or  premiums  realized  on  the  amount  issued. 
If  the  consideration  received  for  the  issue  is  anything  else  than  money,  the 
entry  shall  sjiow  further  the  principal  to  whom  issued,  and  shall  describe 
with  sufficient  particularity  to  identify  it  the  actual  consideration  received 
for  the  issue.  If  the  issue  in  any  case  is  to  an  agent  of  an  undisclosed  prin- 
cipal, the  name  and  business  address  of  such  agent  and  the  fact  of  his  agency 
shall  be  shown  in  the  entry. 

36.  Unfunded  Debt  accounts. —  The  accounts  for  unfunded  debt  are  defined 
as  follows: 

351.  Taxes  Accrued. 

Credit  to  this  account  at  the  close  of  each  month  the  taxes  accrued  during 
the  month,  and  make  corresponding  charges  to  the  appropriate  '"  Taxes 
account.  Credits  to  the  account  "  Taxes  Accrued  "  will  necessarily  be  based 
upon  estimate  until  the  amount  of  tax  levied  for  the  tax  period  is  known ; 
such  estimates  shall  be  based  upon  the  best  data  available,  and  as  soon  as 
the  amount  of  tax  for  the  period  is  known  the  account  involved  shall  be 
adjusted  to  conform.  When  any  tax  is  paid  it  shall  be  charged  to  tliia 
account  and  credited  to  "  Cash  "  or  other  suitable  account. 
352.  Receiver's  Certificates. 

When  any  receiver  acting  under  the  orders  of  a  competent  court  is  in  pos- 
session of  the  property  of  the  corporation  and  under  the  orders  of  such  court 
issues  certificates  of  indebtedness  chargeable  upon  such  property,  the  par 
value  of  such  certificates  shall  be  credited  to  this  account.  Interest  accruing 
upon  such  certificates  shall  also  be  credited  monthly  to  this  account. 

353.  Judgments  Unpaid. 

When  any  judgment  of  indebtedness  is  rendered  by  a  court  of  competent 
jurisdiction  against  the  corporation,  or  any  fine  or  penalty  requiring  the 
payment  of  money  is  assessed  by  such  a  court  against  the  corporation,  and  no 
appeal  accompanied  by  stay  of  execution  has  been  taken  therefrom  within 
the  time  allowed  by  law  for  such  appeal,  the  amount  of  such  judgment  shall 
be  credited  to  this  account,  and  the  entry  shall  designate  the  action  or  suit 
as  a  consequence  of  which  such  judgment  is  pronounced  or  such  fine  or  penalty 
assessed.  The  designation  of  the  action  or  suit  sliall  show  the  court,  the 
term  thereof,  the  parties,  and  the  ciiaracter  of  the  action  or  suit.  Interest 
accruing  upon  any  such  judgment  shall  be  credited  monthly  to  this  account. 

Note. —  In  case  of  appeal  and  afflrmance  in  whole  or  In  part  from  which  Judg- 
ment of  afflrmance  a  further  appeal  lies,  the  same  rule  shall  apply  as  upon  entry 
of  original  judgment. 

354.  Interest  AccrIjed. 

Credit  to  this  account  at  the  close  of  each  month  the  interest  accrued 
during  the  month  upon  indebtedness  of  the  corporation.  When  sucli  interest 
is  paid  it  shall  be  charged  to  this  account  and  credited  to  "  Cash  "  or  other 
suitable  account. 

The  account  "  Interest  Accrued "  does  not  include  interest  on  judgments, 
nor  that  upon  receiver's  certificates.  The  interest  accruing  on  any  judgment 
against  tiie  corporation  or  upon  any  receiver's  certificate  shall  be  credited 
to  the  account  to  which  such  judgment  or  receiver's  certificate  stands  credited. 

Note. —  When  coupon  Interest  matures  it  should  be  transferred  from  the  sub- 
account •'  Unmatured  Coupon  Interest  Accrued "  to  the  sub-account  "  Coupon  In- 
terest Matured",  ^^'hcn  such  interest  is  paid  out  of  coupon  special  deposits  the 
sub-account  "  Coupon  Interest  Matured  "  should  be  charged  and  the  account 
••  Coupon  Special  Deposits  "  credited. 


26  Public  Service  Commission,  Second  Disteict 

355.  Dividends  Declared. 

When  any  dividend  is  declared  it  shall  he  credited  to  this  account  and 
here  remain  until  it  is  paid,  when  it  shall  be  charged  to  this  account  and 
credited  to  "  Cash  "  or  other  suitable  account. 

356.  Bills  Payable. 

When  any  note,  draft,  or  other  bill  payable  which  matures  not  later  than 
one  year  after  date  of  issue  (or  of  demand)  or  assumption  by  the  corporation 
of  primary  liability  thereon  is  issued  or  assumed,  the  par  value  thereof  shall 
be  credited  to  tliis  account,  and  when  it  is  paid  it  shall  be  charged  to  this 
account  and  credited  to  "  Cash  "  or  other  suitable  account. 

E357a.  Consumers'  Deposits  —  Electric. 

Credit  to  this  account,  as  such  deposits  are  made,  all  cash  deposited  with  the 
corporation  by  consumers  as  security  for  the  payment  of  electric  bills.  De- 
posits refunded  shall  be  charged  to  this  account  and  credited  to  "  Cash  ". 
Deposits  applicable  to  uncollectible  or  worthless  electric  bills  shall,  at  the  close 
of  the  fiscal  year  (or  earlier,  at  the  option  of  the  accounting  corporation), 
be  credited  to  the  account  of  the  consumer  involved  and  debited  to  this 
account. 

357b.  Other  Accounts  Payable. 

Credit  to  this  account  when  incurred  all  liabilities  of  the  corporation  upon 
open  accounts,  except  those  provided  for  in  the  foregoing  account  "  Con- 
sumers' Deposits  ". 

358.  Other  Unfunded  Debt. 

Credit  to  this  account  at  face  value  all  unfunded  debt  upon  which  the 
corporation  is  liable  and  which  is  not  elsewhere  provided  for. 

37.  Reserves. — ^Reserves  shall  be  classified  as  Permanent  and  Temporary. 

38.  Permanent  Reserves  defined. — By  Permanent  Reserves  are  meant  those 
that  must  be  maintained  intact  during  the  life  of  the  corporation.  Permanent 
reserves  shall  be  classified  into  the  two  classes:  Premiums  on  Stocks,  and 
Other  Permanent  Reserves. 

371.  Premiums  on  Stocks. 

Premiums  on  stocks  shall  be  sub-classified  with  respect  to  the  several  classes 
of  stocks,  for  definitions  of  which  see  the  accounts  under  the  head  "  Stocks  ". 
A  sub-account  shall  be  kept  for  each  particular  class  of  stocks,  and  such 
sub-accounts  shall  be  severally  entitled: 

Premiums  on  Debenture  Stocks, 

Premiums  on  First  Preferred  Stocks, 

Premiums  on  Second  Preferred  Stocks,  etc.,  and 

Premiums  on  Common  Stocks. 

When  a  premium  is  realized  upon  an  issue  of  any  particular  class  of  stock, 
such  premium  shall  be  credited  to  the  sub-account  above  provided  for  such 
class  of  stock,  and  such  credit  shall  remain  in  such  account  so  long  as  such 
stock  remains  outstanding.  By  a  premium  realized  (as  the  words  are  above 
used)  is  meant  the  excess  of  the  actual  money  value  (at  the  time  of  issue 
of  the  stock)  of  the  consideration  received  for  such  issue  over  the  par  value 
of  the  amount  of  stock  issued.  If  the  stock  is  issued  by  the  corporation  to 
its  treasurer  or  other  agent,  the  excess  of  the  actual  money  value  of  the 
consideration  obtained  by  such  agent  in  exchange  for  such  stock  over  the  par 
value  thereof  shall  be  considered  the  premium  realized. 


Accounts  for  Electrical  Cori-okations  27 

372.  Other  Permanent  Reserves. 
Credit  to  this  account  all  reserves  not  above  provided  for  created  to  remain 
intact  until  the  dissolution  of  the  corporation.  A  separate  sub-account  shall 
be  created  for  each  particular  purpose  for  which  a  reserve  is  raised,  and 
the  purpose  of  the  reserve  shall  be  designated  in  the  title  of  the  account 
thereof  and  shall  be  expressed  in  full  in  the  first  entry  in  such  account. 

39.  Temporary  Reserves  defined. —  By  Temporary  Reserves  are  meant  thosp 
that  are  not  intended  to  remain  intact  during  the  life  of  the  corporation. 
Temporary  reserves  shall  be  classified  as  Contractual  Reserves  and  Xon-cov.- 
tractual  Reserves. 

40.  Contractual  Reserves  defined. —  Contractual  Reserves  are  reserves  neces- 
sitated by  contracts  of  tlie  corporation,  as  e.  g.,  reserves  to  cover  sinking 
funds  provided  for  in  mortgages,  etc.  A  separate  sub-account  shall  be  raised 
for  each  particular  contractual  reserve,  and  to  such  account  shall  be  credited 
all  appropriations  and  accumulations  made  in  accordance  with  the  contract 
provisions  under  which  such  reserve  is  created.  The  purpose  of  the  reserve 
shall  be  designated  in  the  title  of  the  account  thereof  and  shall  be  expressed 

'IT, 

in  full  in  the  first  entry  in  such  account. 

41.  Non-contractual  Reserves  defined. —  Non-contractual  Reserves  are  such 
temporary  reserves  as  are  raised  without  being  required  under  any  contract. 
Non-contractual   reserves  are  divided  into  Required  and   Optional. 

42.  Required  Reserve  accounts. —  Required  reserves  are  provided  for  in  the 
following  accounts: 

374.    Accrued  Amortization  of  Capital. 

Credit  to  this  account  such  amounts  as  are  charged  from  time  to  time  t/O 
"  Operating  Expenses,"  or  other  accounts  to  cover  depreciation  of  plant  and 
equipment,  and  other  amortization  of  capital.  When  any  capital  is  retired 
from  service,  the  original  money  cost  thereof  (estimated  if  not  known,  and 
where  estimated,  that  fact  and  the  facts  upon  which  the  estimate  is  based 
shall  be  stated  in  the  entry),  lass  salvage,  shall  (except  as  provided  in 
account  No.  ElOO,  "Fixed  Capital,  December  31,  1908,")  be  charged  to  this 
account.  The  amount  originally  entered  or  contained  in  the  charges  to  any 
capital  account  in  respect  of  such  capital  so  going  out  of  service  shall  be 
credited  to  such  capital  account,  and  any  necessary  adjusting  entry  made 
to  the  appropriate  sub-account  under  the  account  "  Corporate  Surplus  or 
Deficit ". 

375.  UnamortizEl-  Premium  on  Debt. 

When  funded  debt  securities  or  other  evidences  of  indebtedness  are  dis- 
posed of  for  a  consideration  whose  cash  value  is  greater  than  the  sum  of  the 
par  value  of  such  securities  or  other  evidences  of  indebtedness  and  the  interest 
thereon  accrued  at  the  time  the  transfer  takes  place,  the  excess  of  the  casli 
value  of  such  consideration  received  over  the  sum  of  the  par  value  of  the 
securities  or  other  evidence  of  indebtedness  and  the  accrued  interest  shall  be 
credited  to  this  account.  At  monthly  intervals  thereafter  a  proportion  of 
such  premium  based  upon  the  life  of  the  security  or  other  evidence  of  in- 
debtedness to  maturity  shall  be  charged  to  this  account  and  credited  to 
"Amortization  of  Premium  on  Debt"  in  "Income"  account;  or  at  the  option 
of  the  corporation  the  charge  to  this  account  may  be  delayed  to  a  time  not 
later  than  the  date  of  maturity  of  the  debt,  in  which  case  the  proportion  ap- 


28  Public  Service  Commission,  Secoxd  District 

plicable  to  the  period  covered  by  the  then  current  income  account  shnl!  be 
credited  to  the  account  "Amortization  of  Premium  on  Debt,"  and  the  re- 
mainder of  the  credit  shall  be  to  the  account  "  Other  Additions  to  Surplus  ". 
376.  Otheb  Rfquired  Reserves. 
Credit  to  this  account  all  required  reserves  not  elsewhere  provided  for.  The 
first  entry  of  a  credit  to  this  account  with  respect  to  any  particular  reserve 
shall  show  the  purpose  of  the  reserve,  and  every  subsequent  entry  with 
respect  to  that  reserve  shall  designate  the  reserve  to  which  it  relates. 

43.  Optional  Reserve  accounts. —  Optional  Reserves  are  those  the  creation  of 
whicli  is  solely  within  tlie  discretion  of  the  corporation.  For  such  reserves 
the  following  two  accounts  are  provided: 

381.  CAsuAr.TiK.s  A.\n  Insurance  Reserve. 
When  any  admitted  liability  arises  because  of  loss  or  damage  to  the  prop- 
ert}'  of  others,  or  of  injuries  to  emi)loyees  or  other  persons,  the  amount  of 
the  liability  may  (if  not  previously  provided  for  by  insurance  or  self-insur- 
ance) be  charged  to  the  appropriate  operating  expense  or  other  accounts  and 
credited  to  this  account,  against  which  (in  such  case)  the  actual  cost  of  satis- 
faction of  the  liability  shall  be  charged  when  the  matter  is  determined.  If 
the  extent  of  the  liability  can  not  be  ascertajncd  promptly  after  the  lia- 
bility arises,  it  may  be  estimated  as  accurately  as  practicable  for  the  purpose 
of  determining  the  immediate  charge  to  the  expense  or  other  appropriate 
account,  in  which  case  the  matter  shall  be  adjusted  when  the  extent  of  the 
liability  is  definitely  ascertained.  If  the  loss  is  of  such  character  that  it  is 
in  whole  or  in  part  indemnifiable  under  any  contract  of  insurance  carried  by 
the  corporation,  the  indemnifiable  portion  of  the  loss  shall  be  charged  to  the 
insurer  and  credited  to  "  Casualties  and  Insurance  Reserve  ".  Also  credit  to 
this  account  the  amounts  eliargerl  to  the  operating  expense  account  "  Insur- 
ance "  to  cover  self-carried  risks. 

382.  Other  Optional  Reserves. 
A  sub-account  shall  be  raised  for  each  particular  reserve,  and  its  title  shall 
designate  the  purpose  of  such  reserve  arid  the  first  entry  tlicrcin  shall  express 
in  full  such  purpose. 

44.  Stocks  defined. —  By  Stocks  of  a  corporation,  as  the  term  is  here  used, 
are  meant  those  securities  which  represent  permanent  interests  in  tiie  corpora- 
tion or  interests  which,  if  terminable,  are  so  only  at  the  option  of  the  cor- 
poration. 

45.  Stocks  classified. —  Stocks  are  classified  as  — 
Debenture  Stocks, 

First  Preferred  Stocks, 

Second  Preferred  Stocks,  etc.,  and 

Common  Stocks. 

46.  Debenture  Stocks  defined. —  Debenture  Slocks  are  those  issued  under  a 
contract  to  pay  absolutely  thereon  at  specified  intervals  a  specified  return. 

47.  First  Prcisrred  Stocks  defined. — First  Preferred  Stocks  are  those  which 
have  the  first  claim  upon  such  dividends  as  may  Ik;  distributed.  They  may  be 
cumulative  or  nonciimulative,  participating  or  nonparticipating.  If  cumu- 
lative, the  amount  by  which  the  dividend  at  any  dividend  period  fails  to  reach 
the  stipulated  rate  is  carried  forward  to  continue  as  a  claim  upon  dividends 


Accounts  for  Electrical  Corporations      29 

until  satisfied;  if  noncumulatifc,  such  amount  lapses.  If  a  first  preferred  stock 
is  participating,  it  is  not  limited  to  the  stipulated  rate  in  the  amount  of  divi- 
dends which  it  may  receive,  but  is  entitled  to  participate,  in  accordance  with 
the  terms  of  the  contract  under  which  it  is  issued,  in  further  dividends;  if 
nonparticipating,  it  is  limited  to  the  stipulated  rate. 

48.  Second  Preferred  Stocks  defined. —  Second  Preferred  Stocks  are  those 
whose  claims  in  the  distribution  of  dividends  are  next  after  those  of  ih^t 
preferred  stocks.  These  stocks  may  also  be  cumulative  or  noncumulative,  par- 
ticipating or  nonparticipating. 

49.  Common  Stocks  defined. —  Common  Stocks  are  those  whose  claims  in  the 
distribution  of  dividends  are  subordinate  to  the  claims  of  all  other  stocks. 

50.  Voting  Powers. —  iStocks  differ  also  in  regard  to  the  voting  powers  inci- 
dent to  ownership  of  them. 

51.  Retirement  of  Stocks. —  Stocks  are  sometimes  issued  under  contracts 
wherein  the  issuing  corporation  reserves  to  itself  the  right  to  retire  them  at 
its  option,  either  absolute  or  subject  to  conditions  expressed  in  the  contracts 
whereunder  the  stocks  are  issued. 

52.  Separate  account  required  for  each  class  of  stocks. —  In  the  accounts  of 
stocks  outstanding,  a  separate  account  shall  be  raised  for  each  class  of  stock 
issiied,  and  no  two  stocks  shall  be  considered  of  the  same  class  unless  they 
are  equal  in  their  interest  or  dividend  rights,  their  voting  rights,  and  the 
conditions  under  which  they  may  be  retired.  The  characteristics  of  any  class 
of  stocks  in  these  three  regards  shall  be  designated  in  the  title  of  the  account 
raised  to  cover  such  stocks  and  shall  be  clearly  expressed  in  the  first  entry 
in  such  account.  To  the  account  for  any  class  of  stocks  shall  be  credited 
when  issued  the  par  value  of  the  amount  of  stock  of  that  class  issued.  If 
such  issue  is  for  money,  that  fact  shall  be  stated;  and  if  for  any  other  con- 
sideration than  money,  the  person  to  whom  issued  shall  be  designated,  and 
the  consideration  for  which  issued  shall  be  described  with  sulEcient  par- 
ticularity to  identify  it;  if  such  issue  is  to  the  treasurer,  or  other  agent  of 
the  corporation,  to  be  by  him  disposed  of  for  the  benefit  of  the  corporation, 
that  fact  and  the  name  of  such  agent  shall  be  shown;  and  such  agent  shai' 
in  his  account  of  the  disposition  thereof  show  the  like  details  concerning  ihv 
consideration  realized  thereon,  which  account  when  accepted  by  the  corpo 
ration  shall  be  preserved  as  a  corporate  record.  If  the  fair  cash  value  ot 
the  consideration  realized  upon  the  issue  of  any  amount  of  stock  is  greater 
than  the  par  value  of  such  stock,  the  excess  shall  be  credited  to  the  account 
"Premiums  on  Stocks,"  and  corresponding  reference  thereto  shall  be  con 
tained  in  the  entry  relating  to  such  stock  in  the  stock  account. 


SCHEDULE  B. 


INCOME  ACCOUNT. 

1.  Income  and  Indicant  accounts  compared. —  A  comparison  of  the  balances 

in  the  foregoing  accounts  (Schedule  A)  at  any  particular  moment  will,  if  the 
accounts  have  been  properly  kept,  show  the  then  existing  condition  of  a  cor- 
poration's affairs  so  far  as  such  condition  can  be  shown  tiirough  tlio  accounts. 
The  group  of  accounts  just  defined  is  sometimes  called  the  Balance  Sheet  or 
Indicant  accounts.  Their  balances  indicate  the  condition  of  the  corporation 
at  any  particular  time.  These  accounts  with  their  subsidiary  accounts  are 
all  that  are  necessary  prior  to  the  time  when  the  corporation  becomes  what 
maj'  be  called  a  "  going  concern  ". 

When  a  corporation  begins  operations  it  requires  an  additional  group  of 
accounts  in  which  to  classify  in  convenient  form  the  accounting  history  of 
the  various  changes  it  undergoe-^.  Such  group  of  accounts  brings  together 
or  accumulates  the  ?.ccount  of  the  various  incidents  of  the  corporation's  his- 
tory. This  group  of  accounts  may  be  called  the  Income  account.  They  are 
made  up  usually  on  a  yearly  basis  and  are  closed  into  one  grand  account 
called  "  Corporate  Surplus  or  Deficit,"  which  ties  together  this  group  ot 
accounts  and  the  preceding  group. 

2.  Divisions  of  Income  account. —  The  principal  divisions  of  this  group  of 
accounts  are  the  Revenue  accounts,  the  Revenue  Deduction  accounts,  the 
Income  Deduction  accounts,  and  the  Appropriation  accounts. 

3.  Revenues  defined. —  By  Revenues,  as  the  word  is  used  herein,  are  mean* 
all  amounts  of  money  which  the  corporation  receives  or  becomes  lawfully  en 
titled  to  recover  for  services  rendered,  for  products  sold,  as  gross  profits  on 
merchandise  sold,  or  as  a  return  upon  its  property  (or  interests  in  property). 
Revenues  are  classified  as  Operating  Revenues  and  Non-operating  Revenues. 

4.  Operating  Revenues  defined. — Operating  Revenues  are  those  derived  from 
the  sale  of  products  and  merchandise,  from  services  rendered,  and  from  return 
on  property  used  by  the  person  or  corporation  in  its  own  operations. 

5.  Non-operating  Revenues  defined. —  'Son-opera ling  Revenues  are  those 
derived  as  a  return  upon  the  property  of  the  corporation  in  the  hands  of 
others  or  from  its  interests  in  property  in  the  hands  of  others.  They  may  be 
sub-classified  as  Rents,  Interest,  Dividends,  and  Miscellaneous. 

6.  Revenue  Deductions  defined. —  Revenue  Deductions  include  Expenses, 
'J  axes,  and  Uncollectible  Bills. 

7.  Expenses  defined. —  Expenses  are  those  outgoes  (including  capital  con- 
sumed) necessary  to  the  production  of  the  commodities  sold  and  the  servicoa 
rendered,  and  to  the  collection  of  the  revenues.  Tiny  arc  divided  into  Opcrat 
ing  Expenses  and  \on-operaiing  Expenses.  Operating  Expenses  are  those 
incident  to  the  operating  revenues. 

[30] 


Accounts  fob.   Electkical  Cokpokations      31 

8.  Taxes  defined. —  Taxes  are  those  annual  or  other  payments  exacted  by 
governments  for  the  purpose  of  raising  funds  for  public  uses. 

9.  Uncollectible  Bills  defined. —  \\  lien  a  corporation  is  engaged  regularly 
in  rendering  to  general  consumers  a  service,  or  in  supplying  to  such  con- 
sumers a  commoditj'  (as  e.  g.,  electric  energy  or  gas  for  light,  heat,  or 
power),  current  accounts  or  claims  against  such  consumers  for  such  service 
rendered  or  commodity  supplied  which  are  incapable  of  collection  by  the  exer- 
cise of  reasonable  diligence  are  included  under  the  name  Uncollectible  Bills. 

xo.  Gross  Inccme,  Income  Deductions,  and  Net  Corporate  Income  defined. — 
llevenues,  diminished  by  expenses,  taxes,  •  and  uncollectible  bills,  give  an 
amount  called  Gross  Income,  which  is  applicable  to  corporate  and  leased 
properties.  Gross  income  is  subject  to  several  compulsory  deductions,  mostly 
contractual,  like  rent,  interest,  etc,  and  the  remainder  after  these  are  made 
is  called  Net  Corporate  Income,  which  being  subject  only  to  the  discretion  of 
the  corporation  is  most  conveniently  carried  directly  to  the  corporate  sur- 
plus. The  accounts  covering  the  compulsory  deductions  from  gross  income,  as 
above  defined,  are  called  tlie  Income  Deduction  accounts. 

11.  Appropriation  accounts  defined. —  The  accounts  covering  the  yearly 
changes  in  the  corporate  surplus  are  called  the  Appropriation  accounts,  since 
practically  all  of  the  matters  covered  by  them  are  within  the  discretion  of  the 
corporation,  although  they  also  include  certain  adjustments  made  because 
of  facts  of  previous  years  imperfectly  accounted  for  at  the  time  (whether 
through  error  or  througli  lack  of  information),  and  certain  other  minor 
matters  like  extraordinarj'  expenses  not  chargeable  as  deductions  from  reve- 
nues; also  such  matters  as  profits  on  the  sale  of  capital,  and  profits  and 
losses  on  the  sale  of  investments. 

12.  Definitions  of  Electric  Operating  Revenue  accounts. —  Credits  to  the 
various  revenue  accounts  siiall  be  made  upon  the  basis  of  bills  rendered  or 
of  gross  prices.  Discounts  for  prompt  payment,  corrections  of  overcharges, 
overcollections  tlieretofore  credited  and  afterward  corrected,  authorized  abate- 
ments and  allowances,  and  other  corrections  and  deductions  shall  be  charged 
to  the  revenue  account  to  which  they  relate.  In  the  following  definitions  of 
accounts  the  letters  and  numbers  prefixed  to  the  titles  are  inserted  solely  for 
convenience  of  reference  and  are  no  part  of  the  titles  or  of  the  definitions: 

401.  Municipal  Stbeet  Lighting  —  Akc' 
Credit  to  this  account  all  revenues  derived  from  lighting  streets  for  munici- 
pal corporations  by  means  of  arc  lamps. 

402.  iluMCTPAL  Street  Lighting  —  Incandescent. 

Credit  to  this  account  all  revenues  derived  from  lighting  streets  for  munici- 
pal corporations  by  means  of  incandescent  electric  lamps. 

Note. —  In  the  foregoing  two  accounts  the  word  "  streets  "  is  to  be  interpreted 
to  Include  parks,  plazas,  and  all  other  public  places  not  classified  as  buildings. 

403.  Lighting  Municipal  Buildings  —  Electric. 
Credit  to  this  account  all  revenues  derived  from  lighting  municipal  build- 
ings by  means  of  electric  lamps,  and  from  electric  energy  supplied  for  such 


*  Charges  to  this  and  the  following  revenue  accounts  must  be  made  in  such  wise 
as  to  permit  their  classification  In  the  annual  report  of  the  corporation  to  the 
Public  Service  Commission. 


32  Public  Service  Commission,  Second  District 

purposes,  or  for  heat  or  power  in  municipal  buildings  where  such  energy  is 
supplied  at  lighting  rates  and  is  not  separately  measured . 

404.  Municipal  Heat  and  Power  —  Electric. 

Credit  to  this  account  all  revenues  derived  from  municipal  corporations  for 
electric  energy  supplied  at  special  heat  or  power  rates  to  such  corporations 
for  the  production  of  heat  and  power. 

405.  Miscellaneous  Electric  Revenue  —  Municipal. 

Credit  to  this  account  all  revenues  derived  from  supplying  electric  energy 
to  municipal  corporations  and  not  provided  for  in  the  foregoing  accounts; 
also  those  from  the  letting  of  maters,  motors,  and  other  electric  equipment 
to  such  corporations. 

406.  Commercial  Flat  Rate  Lighting. 
Credit  to  this   account  all   revenues   derived   from  consumers   other   than 
municipal  corporations  for  electric  lighting  at  flat  rates  per  year,  per  month, 
per  night,  per  hour,  or  other  time  unit,  or  on  any  basis  independent  of  the 
quantity  of  energy  supplied. 

407.  Commercial  Flat  Rate  Poweb. 

Credit  to  this  account  all  revenues  derived  from  all  consumers,  except 
municipal,  railroad,  and  other  electrical  corporations,  for  electric  energy 
supplied  for  heat  or  power  at  special  flat  rates  per  year,  per  month,  per  niglit, 
per  hour,  or  otlier  time  unit,  or  on  any  basis  independent  of  the  quantity  of 
energy  supplied. 

408.  Commercial  Metered  Lighting. 

Credit  to  this  account  all  revenues  derived  from  all  consumers,  except 
municipal  corporations,  for  measured  electric  energy  supplied  for  electric 
lighting  where  the  total  receipt  is  dependent  on  the  quantity  of  energy 
supplied. 

XoTK. —  Where  electric  energy  flowins  through  any  meter  Is  used  by  nny  other 
consumer  than  a  municipal  corporation  foi-  lioth  arc  and  incandescent  lighting,  or 
for  arc  and  Incandescent  lighting  and  incidentally  for  power  purposes  such  as 
running  fans,  sewing  machines,  etc.,  the  revenues  derived  therefrom  shall  be  credited 
to  this  account 

409.  Commercial  Metered  Power. 

Credit   to  this   account  all    revenues   derived    from   all   consumers,   except 
municipal,  railroad,  and  other  electrical  corporations,  for  measured  electric 
energy   supplied   for   heat   or   power   at   special    heat   or   power   rates,   where 
the  total  receipt  is  dependent  on  the  quantity  of  energy  supplied. 
410.  Railroad  Corporations. 

Credit  to  this  account  all  revenues  derived  from  electric  energy  sold  to 
street  and  other  railroad  corporations  for  the  propulsion  of  their  cars,  for 
lunning  their  shops,  and  for  other  power,  and  for  heating  purposes.  If  such 
energy  is  incidentally  used  for  lighting  also,  but  the  portion  used  for  lighting 
is  not  separately  measured,  the  revenue  therefrom  shall  be  included  in  this 
account. 

411.  Other  Electrical  Corpoeations. 

Credit  to  this  account  all  revenues  derived  from  electric  energy  sold  to 
other  electrical  corporations  to  be  by  them  distributed  over  their  own  lines  to 
.consumers.  If  any  portion  of  such  energy  is  incidentally  consumed  by  such 
corporations  for  their  own  benefit,  whether  for  light,  beat,  or  power,  it  shall 


AccoujJTS  FOR  Electrical  Corporations  '6'6 

be  included  herein,  if  not  separate!}^  measured,  or  if  included  under  the  sam*- 
contract  with  that  which  is  distributed  by  them  to  consumers, 

421.  Rent  of  Electric  Meters. 
Credit   to   this  account   all   revenues   derived   from   the   letting   of  electrir 
meters  to  others  than  municipal  corporations. 

422.  Rent  of  Electric  Appliances. 

Credit  to  this  account  all  revenues  derived  from  the  letting  of  elecir'r 
motors,  fans,  heating  appliances,  batteries,  lamps,  and  other  electric  appanitii- 
and  appliances  (except  meters)  to  others  than  municipal  corporations. 
Where  the  contract  of  letting  names  only  a  single  consideration  for  both  the 
•  letting  and  the  maintenance  of  the  appliances  so  let,  the  entire  revenue  shall 
be  included  in  this  account. 

423.  Electric  Merchandise  and  Jobi^ing  Revenue. 

Credit  to  this  account  all  receipts  from  the  sale  of  electric  merchandise  and 
from  electric  jobbing.  Charge  to  this  account  the  cost  to  the  accounting 
corporation  of  electric  merchandise  sold,  such  cost  including  transportation 
charges  paid  on  such  goods. 

Credit  also  to  this  account  the  profit  or  commission  accruing  to  the  cor- 
poration on  all  jobbing  work  performed  by  it  as  agent  under  agency  contracts, 
whereunder  it  undertakes  to  do  jobbing  work  for  another  for  a  stipulated 
profit  or  commission  upon  its  actual  expense  for  labor,  materials,  and  supplies. 

Note  A. —  In  its  annual  reports  to  the  Public  Service  Commission  the  reporting 
corporation  will  be  required  to  analyze  the  credits  and  debits  to  this  account. 

NoTF.  B. —  This  account  does  not  include  receipts  from  the  sale  of  superseded 
equipment,  or  of  junk  or  other  scrap  or  salvage. 

424.  Sale  of  Byproducts. 

Credit  to  this  account  all  revenue  derived  from  tho  sale  of  ashes,  cinders, 
chemical  waste,  gas  producer  residuals,  and  other  byproducts  of  electric 
operations. 

425.  Joint  Electric  Rent  Revenue. 

When  any  corporation  engages  in  electric  operations  for  the  production  of 
some  of  its  product  for  the  benefit  of  another  or  others  under  an  arrangement 
for  apportioning  the  expense  upon  the  basis  of  the  relative  amounts  of  benefit 
to  the  several  participants  in  the  arrangement,  if  such  arrangement  provides 
for  the  receipt  by  the  corporation  of  any  profit  or  return  upon  its  property, 
such  profit  or  return  upon  property  shall,  as  it  accrues,  be  credited  month 
by  month  to  this  account.  Such  profit  or  return  must  be  over  and  above  any 
provision  for  wear  and  tear  and  depreciation  of  plant  involved  in  the  said 
production,  and  the  amount  thereof  must  be  as  provided  in  the  arrangement 
under  which  the  joint  production  occurs. 

426.  Bbeak-down  Service. 
Credit  to  this  account  all  revenues  derived  from  the  insurance  of  a  supply 
of  electric  energy  to  a  stipulated  amount  to  concerns  ordinarily  producing 
their  own  or  procuring  it  from  sources  other  than  the  corporation  acting  as 
insurer. 

427.  Other  Miscellaneous  Electric  Revenue. 
Credit  to  this  account  all  revenues  derived  from  others  than  municipal  cor- 
porations for  the  supply  of  electric  energy  and  service  and  from  other  electric 
operations  not  includible  in  any  of  the  foregoing  accounts, 

2 


34         Public  Service  Commission,  Second  District 

13.  Revenue  from  Outside  Operations. — The  detailed  revenue  accounts  for 
operations  other  thp.n  the  above  mentioned  will  be  provided  for  elsewhere. 

14.  Operating  Expenses  defined. —  By  the  operating  expenses  of  a  corpora- 
tion are  meant  such  expenses  as  are  necessary  to  the  maintenance  of  the 
corporate  organization,  the  rendering  of  services  required  or  authorized  by 
law,  the  sale  of  merchandise,  the  production  (including  herein  capital  con- 
sumed) and  disposition  of  the  commodities  produced,  and  to  the  collection 
of  the  revenues  therefor.  Expenses  directly  incident  to  the  collection  of  non- 
operating  revenues  and  the  maintenance  of  the  property  from  which  non- 
operating  revenues  are  derived  are  excluded  from  operating  expenses. 

15.  Definitions  of  certain  terms  used  in  connection  with  expense  accounts. — 
Except  where  some  other  meaning  is  clearly  specified  in  the  definitions  of  the 
accounts,  the  following  words,  wherever  used  hereunder,  have  the  meanings 
below  stated: 

Cost  means  cash  or  money  cost,  and  not  price  based  on  a  terra  of  credit. 

Labor  means  human  services  of  whatever  character. 

Cost  of  labor  includes  wages,  salaries,  and  fees  paid  to  persons  for  their 
services. 

Cost  of  materials  and  supplies  includes  all  specifically  assignable  transporta- 
tion charges  incurred  in  obtaining  the  delivery  of  such  materials  and  sup- 
plies upon  tlie  premises  of  the  purchaser,  and  cost  of  any  special  tests  made 
thereon  prior  to  their  acceptance;  and  in  case  the  accounting  person  or  cor- 
poration desires,  it  may  include  a  suitable  proportion  of  store  expenses  (when 
the  materials  and  supplies  are  passed  through  stores)  and  the  cost  of  further 
transportation  to  the  place  of  consumption,  and  a  suitable  proportion  of  the 
expenses  of  the  purchasing  department,  in  which  case  a  corresponding  credit 
shall  be  made  to  the  suitable  expense  account  as  hereinafter  provided. 

Cost  of  repairs,  when  made  by  the  accounting  person  or  corporation,  includes 
cost  of  labor  expended  and  material  consumed,  less  salvage,  if  any. 

Note. —  It  is  not  required  that  tlie  transportation  element  of  cost  shall  be  as- 
signed with  a  greater  degree  of  accuracy  than  to  the  nearest  cent  per  unit  of 
material  or  supply.  Where  a  single  transportation  item  covers  a  multitude  of 
things  the  portion  of  the  expense  not  assigned  to  specific  things  should  be  charged 
to  the  same  account  that  store  expenses  arc  charged  to. 

16.  Definitions  of  Electric  Operating  Expense  accounts. —  In  the  following 
definitions  of  accounts  the  letters  and  numbers  prefixed  to  the  titles  are 
inserted  solely  for  convenience  of  reference  and  are  no  part  of  the  titles  or 
of  the  definitions: 

GENERAL    ACCOUNTS. 

I.  Production  Expenses. 
II.  Transmission  Expenses. 
III.  Electric  Storage  Expenses. 

' IV.  Distribution  Expenses.      

•      • V.  Utilization  Expenses.  •    •  •  •• 

••*     •      VI.  Commercial  Expenses. 

VII.  General   and  Miscellaneous  Expenses. 

I.  PRODUCTION    EXPENSES. 

Note. —  In   case   the  accounting  corporation   operates  two  or  more  separate  and 

distlnrt   plants  •  for    the   production   of  electric   energy.   It   will    he    rpquiipd   to   keep 

(with   the   detail   herein   prescribed)    separate  accounts  covering  producilon  at   the 


Accounts  foe  Electeical  Coeporations      35 

several  plants.  In  case  the  circumstances  of  any  corporation  make  it  impracticable 
to  allocate  the  cost  of  its  station  labor  among  the  accounts  below  prescribed,  it 
should  petition  the  Public  Service  Commission  for  permission  to  consolidate  two  or 
more  of  them.  Such  application  must  set  out  in  full  the  facts  which  in  the  judg- 
ment of  the  petitioner  make  such  allocation   impracticable. 

E501a.  Station  Supeeintendence  and  Care. 
Charge   to  this  account  salaries  and  personal  expenses  of  superintendents 
and   assistants,   chemists,   clerks,   janitors,   watchmen,   elevatormen,   and   also 
that   portion   of   the   salaries   and  expenses   of   the   engineering   staff   assign- 
able to  the  generating  plant. 

E501b.  Boiler  Labor. 
Charge  to  this  account  the  cost  of  labor  in  boiler  room  and  elsewhere  in 
and  about  the  premises  having  to  do  with  making  steam.    This  includes  such 
labor  as  that  of  fire  room  engineers  and   assistants,  water  tenders,   firemen, 
coal  handlers,  ash  handlers,  boiler  cleaners,  and  feed-pump  men. 

E501c.  Producer  Labor. 
Charge  to  this  account  the  cost  of  all  labor  in  and  about  the  premises  hav- 
ing to  do  with  the  production  of  power  gas. 

E501d.  Engine  Labor. 
Charge  to  this   account  the   cost  of   labor   on  prime  movers  of   all  kinds. 
This  includes  such  labor  as  that  of  chief  engineers  and  assistants,  engineers, 
oilers,  wipers,  and  machinists. 

E501e.  Electric  Labor. 
Charge  to  this  account  the  cost  of  all  labor  in  connection  with  the  electric 
generating  apparatus  and  devices,  beginning  with  the  generators  direct  con- 
nected or  belted  to  the  prime  movers,  and  including  the  switchboard,  feeder 
terminal  board,  and  to  where  the  electric  current  leaves  the  station  for  the 
transmission  or  distribution  system.  This  includes  such  labor  as  that  of 
system  operators  or  load  dispatchers;  foreman  over  regulators,  regulators, 
and  assistants;  switchboard  men,  brushmen,  wipers,  and  wiremen. 

E502a.  Fuel  for  Steam. 
Charge  to  this  account  the  cost  of  fuel,  wliether  coal  or  oil,  used  under  the 
boilers  for  electric  generation,  at  the  cost  delivered  in  the  bunkers  or  tanks; 
also  any  special  expense  incurred  in  disposing  of  ashes. 

Note. —  No   portion   of  the   cost   of  boiler   room   labor  shall   be  charged   to   this 
account. 

E502b.  Fuel  fob  Producer  Gas. 
Charge  to  this  account  the  cost  of  fuel  used  for  generating  producer  gas. 

E503a.  Water  for  Steam  Power  and  Gas. 
Charge  to  this  account  the  cost  of  feed  water  and  of  water  for  condensers; 
also  the  cost  of  boiler  compound.    Water  used  for  general  station  purposes  is 
not  to  be  included.  ..... 

E503b.  Water  for  Hydraulic  Power. "•"• 

Charge  to  this  account  the  cost  of  all  water  purchased  for  the  purpose  of 
operating  hydraulic  power  plants  in  the  electric  department. 
E504.  Lubricants  for  Power. 
Charge  to  this  account  the  cost  of  lubricants  for  machinery  in  the  gener- 
ating station;   but  not  oil'  for  transformers,  grease  for  wagons,  or  oil  for 
lanterns,  •  "      • 


36  Public  JSekvice  Commission',  Skcon'd  District 

E505a.  Pro:)ictiox  Supplies. 
Charge  to  this  account  the  cost  of  all  supplies,  tools,  etc.,  used  in  the 
generating  plant  which  are  consumed  in  the  operating  process,  the  replace- 
ment of  which  does  not  constitute  a  repair  or  renewal ;  also  tiie  cost  of 
repairs  of  such  tools.  This  includes  such  matters  as  waste,  packing,  wipers, 
gauge  glasses,  gauge  washers,  manhole  gaskets,  handhole  gaskets,  lire  room 
tools,  steam  and  air  hose,  bolts,  screws,  nails,  tools,  dynamo  brushes,  etc. 

E505b.  Station  Expense. 
Charge  to  this  account  the  general  and  miscellaneous  expenses  in  the 
generating  plant  not  specifically  chargeable  to  other  accounts,  including  such 
matters  as  lighting,  heating,  and  cleaning  systems;  fire  protection  system; 
janitors'  supplies;  ice  and  water;  telephone  and  toilet  services  at  station; 
and  care  of  streets,  yards,  and  sidings. 

E507.  Repairs  of  Power  Plant  Buildings. 

Charge  to  this  account  the  cost  of  repairs  of  buildings  and  structures  used 
for  power  station  purposes ;  cost  of  repairs  of  fixtures  therein ;  cost  of  main- 
taining walks,  drivewaj's,  and  grounds  connected  with  such  buildings;  cost  of 
delivering  material,  including  freight  charges,  if  any;  and  all  incidental 
expenses  connected  with  the  maintenance  of  such  buildings  and  structures. 

The  term  "  buildings  and  structures,"  in  addition  to  embracing  the  build- 
ings proper,  shall  be  understood  to  include  fixtures  when  immovable  and 
built  in  as  a  part  of  the  structure;  permanent  foundations  and  piers;  pipes 
for  gas,  water,  sewerage,  and  drainage;  apparatus  tor  heating,  lighting,  and 
ventilating;  freight  and  passenger  elevators  with  fixtures  and  appurtenances; 
platforms;  appliances  for  protecting  buildings  against  fires;  fences,  walls, 
sidewalks,  and  pavements  within  the  limits  of  grounds  immediately  adjacent 
to  such  buildings. 

Note. —  The  cost  of  replacement  of  a  building  or  structure,  when  In  excess  of 
$100,  shall  be  treated  through  the  appropriate  capital  account ;  when  less  than 
$100,  It  may  be  charged  directly  to  this  account  or  a  sub-account  hereunder. 

E508a.  Repairs  of  Furnaces  and  Boilers. 

Charge  to  this  account  the  cost  of  repairing  boilers  and  furnaces,  including 
specially  provided  foundations  and  settings,  iron  smokestacks,  and  such  mat- 
ters as  brick  work,  bridge  wall,  arches,  jambs,  grate  bars,  stoker  bars  and 
webs,  furnaces,  valves,  superheaters,  damper  regulators,  and  tubes. 
E508b.  Repairs  of  Boiler  Apparatus. 

Charge  to  this  account  the  cost  of  repairing  feed  water,  coal  and  ash 
handling  systems,  and  auxiliary  apparatus  in  the  fire  room;  including  such 
matters  as  feed  pumps,  blower  engines,  coal  conveyor,  digger,  trolley  and 
cable  tower,  crusher  and  belt  links,  brackets,  wheels,  chutes  and  gates;  ash 
conveyor  cars,  winches,  motors,  buckets,  shaft,  chain,  and  wheels;  filters, 
boiler  compound  injector  and  pump;  heaters,  primary  and  secondary;  econo- 
itsizers,  and  water  meters. 

E508c.  Repairs  of  Steam  Accessories. 

Charge  to  this  account  the  cost  of  repairing  the  piping  system  in  connec- 
tion with  the  making  of  steam  and  delivery  thereof  to  the  prime  movers; 
including  such  matters  as  water  feed  piping,  cold  main,  hot  main,  water 
auction,  valves,  joints,  jackets,  ash  pit  drains  and  ash  pocket  syphons,  oil 
drains  from  engine  crank  pits,  receiving  tanks,  filter  pumps  to  engine  valve, 
steam  and  exhaust  line  systems,  sewer  cotmectiooB,  and  air  line. 


Accounts  foe  Electrical,  Cokporatioks      o7 

E509a.  Repairs  of  Reciprocating  Engines. 
Charge  to  tnis  account  the  cost  of   repairing  reciprocating  steam  engines 
used  in  tha  power  plant. 

E509b.  Repairs  of  Steam  Turbines. 
Charge  to  this  account  the  cost  of  repairing  steam  turbines  used  in  the  power 
plant. 

EoO'Jc.  Repairs  of  Other  Steam  Engine  Equipment. 
Charge  to  this  account  the  cost  of  repairing  apparatus  auxiliary  to  the 
prime  movers,  including  such  matters  as  condensers,  packing  tubes,  renew- 
ing tubes,  heads  and  doors,  and  miscellaneous;  and  pumps,  air  and  circu- 
lating, wet  vacuum,  dry  vacuum,  and  oil  systems,  but  excluding  the  power 
conveying  apparatus. 

E510a.  Repairs  of  Dams,  Canals,  and  Pipe  Lines. 
Charge  to  this  account  the  cost  of  repairing  hydraulic  structures.  Such 
structures  include  dams,  embankments,  etc.,  for  impounding  water,  and  all 
appurtenant  gates,  valves,  weirs,  wasteways,  canals,  conduits  and  other  chan- 
nels (including  riprap,  lining  walls,  etc.),  pipe  lines,  aqueducts,  and  support- 
ing trestles,  etc.,  forebays  and  appurtenant  sieves  and  grids,  wasteways,  etc., 
and  all  viaducts,  bridges,  foot-bridges,  etc.,  over  and  accessory  to  or  neces- 
sitated by  such  canals,  aqueducts,  and  pipe  lines;  also  the  wastewrys  con- 
ducting water  from  the  outlet  of  the  draft-tube  to  the  point  of  final  discharge. 

EolOb.  Repairs  of  Turbines  and  Wateb-wiieels. 
Charge   to   this   account   the   cost   of   repairing   wheel-gates,   turbines,    and 
other  hydraulic  apparatus   from  the  inlet  valve  to  and   including  the  wheel 
governor  and  to  the  outlet  of  the  draft-tube. 

Eolla.  Repairs  of  Gas  Producers  and  Accessories. 
Charge  to  this  account  the  cost  of  repairing  apparatus  devoted  to  the 
generation  of  producer  gas  to  be  consumed  in  gas  engines  in  the  electric 
generating  station ;  also  the  cost  of  repairing  gas  conductor  and  exhaust 
pipes  and  other  auxiliary  gas  power  apparatus.  This  includes  producers, 
economizers,  regenerators,  vaporizers,  steam  injectors,  scrubbers,  exhauster 
outfits,  seals,  specially  provided  boilers  and  pumps,  flues  and  piping,  blower 
engines,  holders',  etc.     Power  conveying  apparatus  is  not  included  herein. 

Eollb.  Repairs  of  Gas  Engines. 
Charge  to  this  account  the  cost  of  repairing  gas  engines   devoted  to  the 
production  of  electric  energy,  including  inlet  valves,  governors,  and  ignition 
and  starting  apparatus. 

E512a.  Repairs  of  Electric  Generators. 
Charge  to   this   account    the   cost   of   re])aiiing   dynamos,    alternators,   and 
other  electric  generating  appaiatus  driven   by   steam,   water,   or  gas  "power; 
and  rotaries  and  motor  generating  sets,  exciters,  etc.,  when  not  installed  in 
3onnection  witii  transmission  systems. 

E512b.  Repairs  of  Accessory  Electric  Equipment. 
Charge  to  this  account  the  cost  of  repairing  the  electric  generating  appa- 
ratus not  includible  in  the  foregoing  account.  This  includes  bus-bars,  regu- 
lators, station  cables,  station  switchboards  and  equipment,  such  as  circuit- 
breakers,  switches,  anmieters,  voltmeters,  wattmeters,  etc.  (and  their  specially 
provided  foundations  and  settings),  and  the  station  terminal  board;  also  head- 


38  Public  Seevice  Commission,  Second  District 

gate  motors,  pump  motors,  air  compressor  motors,  etc.,  and  special  high- 
tension  transmission  equipment  at  power  stations,  such  as  high-tension  bus- 
bars, high-tension  switchboards,  high-tension  switches,  high-tension  current 
transformers,  high-tension  lightning  arresters,  high-tension  potential  trans- 
formers, high-tension  reactive  coils,  high-tension  choke  coils,  high-tension 
grounding  devices  and  resistances,  high-tension  raising  and  lowering  trans- 
formers, etc.,  but  not  wiring  for  lighting  the  station. 

E513a.  Repairs  of  Station  Tools  akp  Jmpi-kments. 
Charge  to  this  account  the  cost  of  repairing  station  tools  and  implements 
that  have  been  capitalized   (except  fire  tools,  elsewhere  provided  for).     Among 
the  principal  items  in  this  account  are  blacksmiths',  machinists',  and  pipe 
titters'  tools,  pump  room  tools,  engine  tools,  and  cutting  tools. 

E513b.  Repaibs  of  Miscellaneous  Station  Equipment. 

Charge  to  this  account  the  cost  of  repairing  station  apparatus  not  in- 
cludible in  the  foregoing  repair  accounts,  particularly  the  power  transmission 
equipment,  such  as  shafting,  belting,  and  clutches;  motors,  hoists,  and 
cranes,  etc. 

E514.  Steam  from  Other  Sources. 

Charge  to  this  accoimt  the  cost  of  all  purchased  or  jointly  produced  steam 
consumed  in  the  power  plant  of  the  electric  department. 

Note. —  In  case  such  steam  is  jointly  produced,  i.  e.,  produced  by  another  person 
or  corporation  under  a  joint  arrangement  for  sharing  the  cost  of  production  In  pro- 
portion to  the  benefits  to  the  several  participants,  the  charge  to  this  account  may 
include  a  proportion  to  cover  depreciation  of  plant  employed  as  well  as  the  propor- 
tion of  direct  expense,  but  It  must  not  include  any  allowance  or  return  upon  the 
cost  or  value  of  the  plant.  Such  allowance  or  return  upon  property  must  be 
charged  to  account  No.  922f,  "  Other  Rent  Deductions  ".     (See  page  53.) 

E515.  Power  Gas  from  Other  Sources. 

Charge  to  this  account  the  cost  of  all  gas  consumed  in  the  gas  power  plants 
of  electric  generating  stations,  but  not  produced  in  the  electric  department; 
this  includes  the  cost  of  gas  produced  for  the  corporation  by  another  corpo- 
ration under  any  joint  arrangement  for  the  sharing  of  expense  (upon  the 
basis  of  the  relative  amounts  of  benefit  to  the  several  participants),  in- 
clusive of  provision  in  such  expense  for  depreciation  of  plant,  but  exclusive 
of  allowance  for  profit  or  return  upon  the  value  of  property  used  in  such 
production. 

E516.  Electric  Energy  from  Other  Sources. 

Charge  to  this  account  the  cost,  at  the  point  of  delivery  to  the  corporation, 
of  all  electric  energy  purchased  or  produced  for  the  corporation  by  another 
corporation  under  any  joint  arrangement  for  the  sharing  of  expense  (upon  the 
basis  of  the  relative  amounts  of  benefit  to  the  several  participants),  inclusive 
of  provision  in  such  expense  for  depreciation  of  plant,  but  exclusive  of  allow- 
ance for  profit  or  return  upon  the  value  of  property  used  in  such  production. 

II.  TRAl^SMISSION  EXPENSES. 

E521a.  Transmission  Subway  Rent. 

Charge  to  this  account  the  rents  payable  accruing  for  ducts  leased  from 
other  corporations  or  from  a  municipal  corporation. 

Note. — .In  case  the  rented  subway  is  used  for  distribution  as  well  as  for  trans- 
mission, the  rent  should  be  apportioned  between  this  account  and  account  No.  E521b, 
"  Distribution  Subway  Rent ". 


Accounts  for  Electrical  Corporations      39 

E522a.  Transmission  Pole  and  Fixture  Eepaibs. 

Charge  to  this  account  the  cost  of  repairing  and  renewing  poles,  cross-arms, 
and  insulator  pins;  braces,  brackets,  and  other  pole  fixtures;  guys  and  other 
supports  for  holding  the  poles,  towers,  and  other  structures  in  position;  also 
repairs  of  towers  and  other  structures  maintained  primarily  for  supporting 
the  overhead  transmission  system. 

This  account  does  not  include  insulators. 

Note  A. —  The  cost  of  repairing  and  renewing  poles  and  fixtures  which  carry  both 
transmission  and  distribution  conductors  should  be  apportioned  between  this  ac- 
count and  account  No.  E522b,   "  Distribution  Pole  and  Fixture  Repairs  ". 

Note  B. —  The  cost  of  replacement  of  towers  and  other  structures  maintained 
primarily  for  supporting  the  overhead  electric  construction  shall,  when  the  in- 
dividual costs  of  the  same  equal  or  exceed  $100,  be  treated  through  the  appropriate 
capital  accounts.  When  the  Individual  cost  is  less  than  $100,  the  replacement  may 
be   charged   directly  to  this   account. 

E523a.  Transmission  Underground  Conduit  Repairs. 

Charge  to  this  account  the  cost  of  patrolling  and  inspecting  as  well  as 
repairing  transmission  underground  conduits,  including  renewing  ducts  and 
pipes,  enlarging  and  repairing  manholes,  re-paving  streets  over  such  structures, 
etc.  This  account  does  not  include  any  repairs  of  conductors  or  of  the  in- 
sulation thereof. 

Note. —  The  cost  of  maintaining  underground  conduits  which  carry  both  trans- 
mission and  distribution  conductors  should  be  apportioned  between  this  account 
and  account  No.  E523b,  "  Distribution  Underground  Conduit  Repairs  ". 

E524a.  Overhead  Transmission  System  Repairs. 

Charge  to  this  account  the  cost  of  repairing  and  maintaining  overhead 
trunk  lines  between  generating  and  sub-stations,  including  patrolling  and 
testing,  and  all  repairs. 

Note  A. —  Tliis  account  does  not  include  the  cost  of  repairing  poles  and  fixtures, 
for  which  see  account  No.  Eo22a,  "  Transmission  Pole  and  Fixture  Repairs  ". 

NoTK  B. —  When  the  electric  current  generated  (or  received  from  another  corpo- 
ration) Is  conducted,  either  at  the  voltage  of  generation  (or  receipt)  or  at  a 
higher  voltage,  to  a  point  where  it  is  (a)  lowered  in  voltage  by  means  of  step- 
down  transformers,  or  changed  as  to  kind  or  frequency  by  means  of  (b)  motor 
generator  sets,  (c)  rotary  converters,  or  (d)  frequency  changers,  that  portion  of 
the  outside  line  or  conductor  system  antecedent  to  the  said  stepdown  trans- 
formers, motor  generator  sets,  rotary  converters,  or  frequency  changers,  shall 
be  classed  as  the  Transmission  System ;  exo&pt,  however,  that  primary  wiring  in 
lighting  systems  at  not  to  exceed  4,400  volts,  4-wire,  3-phase,  shall  be  classed  as 
a  part  of  the  Distribution  System.  Tie-lines  between  generating  stations  and 
sub-stations  shall  follow  the  same  rule.  Line  transformers  are  not  included 
among  the  "  stepdown   transformers  "  above   mentioned. 

E524b.  Underground  Transmission  System  Repairs. 
Charge  to  this  account  the  cost  of  inspecting  and  repairing  underground 
transmission  cables. 

E525.  Sub-station  Labor. 
Charge  to  this  account  the  cost  of  all  labor  employed  in  superintending  and 
operating  sub-stations,  including  not  only  that  of  regulators,  brushmen,  and 
others  engaged  in  operating  the  electric  apparatus,  but  also  that  of  clerks, 
janitors,  watchmen,  etc. 

E526.  Sub-station  Supplies  and  Expenses. 
Charge  to  this  account  the  cost  of  supplies  consumed  and  expenses  incurred 
in  connection  with  the  operation  of  sub-stations,  such  as  telephone  rents,  light, 
heat,  etc. 


40  Public  Service  Commission,  Second  District 

E527.    Repairs  of  Sub-station  Buildings. 
Charge  to  this  account  the  cost  of  repairing  sub-station  buildings  and  per- 
manent fixtures  therein,  including  grounds  and  adjacent  streets,  vaults,  sheds, 
pits,  sidewalks,  etc. 

E528.  Repairs  of  Sub-station  Equipment. 

Charge  to  this  account  the  cost  of  repairing  apparatus  in  sub-stations,  in- 
cluding sub-station  cables,  switchboards  and  instruments,  station  terminal 
board,  etc. 

Note. —  This  account  should  not  Include  the  cost  of  repairing  any  storage  battery 
equipment,  for  which  see  account  No.  E529d,  "  Repairs  of  Storage  Battery 
Accessories  ". 

III.  ELECTRIC  STORAGE  EXPENSES. 
Note. —  In  case  any  electrical  corporation  desires  to  keep  fewer  accounts  cover- 
ing its  electric  storage  expenses,  it  will,  untii  otherwise  ordered,  be  allowed  to  con- 
solidate any  two  or  more  of  the  four  accounts  here  prescribed.  In  such  case,  the 
corporation  must  (before  consolidating)  file  with  the  Public  Service  Commission  a 
notice  of  such  consolidation,  specifying  the  accounts  to  be  consolidated.  Such 
notice  must  be  in  the  form  prescribed  iu  the  order  covering  these  accounts. 

E529a.  Storage  Battery  Labor. 
Charge  to  this  account  the  salaries  and  personal  expenses  of  superintendent, 
clerks,  and  batterymen,  including  inspectors  and  testers. 

E529b.  Storage  Battery  Supplies. 
Charge  to  this  account  the  cost  of  acid  and  distilled  water  in  cells,  soda, 
sponges,   brooms,   mops,   waste,    rags,    hj'drometers,   thermometers,    automatic 
cell  fillers,  rubber  hose,  gloves,   shoes,  paint,  etc.,  and  brushes  for  boosters 
and  compensators. 

E529c.  Storage  Battery  Renewals. 
Charge  to  this  account  the  cost  of  renewing  worn-out  cells,  including  dia- 
phragms, negative  and  positive  plates,  lead  in  strip,  spelter,  pails,  candles,  dry 
boards,  tank  bands,  sheet  lead,  glass  plates,  glass  covers,  hydrogen  generators, 
jumpers,  clamps,  lampblack,  etc. 

E529d.  Repairs  of  Storage  Battery  Accessories. 
Charge   to   this  account  the  cost  of  repairing  tanks,  battery  room  floor, 
switches,  regulating  apparatus,  boosters,  and  compensators. 

IV.  DISTRIBUTION  EXPENSES. 
E531.  Electric  Distribution  Superintendence. 
Charge  to  this  account  the  salaries  and  personal  expenses  of  superintendents 
and  clerks,    and  also   that   portion  of  the   salaries  of  the   engineering   staff 
of  the  company  which  is  assignable  to  distribution. 

E532a.  Electric  Distribution  Maps  and  Records. 
Charge  to  this  account  the  cost  of  maps  and  records  of  overhead  and  under- 
ground lines,  including  salaries  and  personal  expenses  of  mappers  and  drafts- 
men, cost  of  drawing  material,  etc. 

E532b.  Electric  Distribution  Office  Expense. 
Charge  to  this  account  the  cost  of  all  other  supplies  and  expenses  of  the 
office  of  the  superintendent  of  the  distribution  department. 


Accounts  for  Electeical  Corporations  41 

E533.  Setting  and  Removing  Mj^teks  and  Transformers. 

Charge  to  this  account  the  cost  of  all  supplies  consumed  and  all  expenses 
incurred  in  connection  with  the  operation  of  service  transformers  and  coa- 
Bumers'  meters.  This  includes  such  matters  as  setting  and  removing  such 
transformers  and  meters,  connecting  and  disconnecting  services,  and  the  like. 

Note. —  In  case  it  is  the  policy  of  the  accounting  corporation  to  charge  the  cost 
of  the  first  setting  of  consumers'  meters  to  capital,  such  charge  should  be  made  to 
account  No.  E167b,   "  Electric  Meter  Installation  ". 

E521b.  Distribution   Sudway  Rent. 

Charge  to  this  account  the  rents  payable  accruing  for  underground  con- 
duits used  f«r  distribution  conductors. 

Note. —  In  case  the  rented  subway  Is  used  for  transmission  as  well  as  for  dis- 
tribution, the  rent  should  be  apportioned  between  this  account  and  account  No. 
E521a,   "  Transmission   Subway  Rent  ". 

E522b.  Distribution  Pole  and  Fixture  Repairs. 

Charge  to  this  account  the  coat  of  repairing  and  renewing  poles,  cros^- 
arms,  and  insulator  pins ;  braces,  brackets,  and  other  pole  fixtures ;  guys  and 
other  supports  for  holding  the  poles,  towers,  and  other  structures  in  position; 
also  repairs  of  towers  and  otiier  slructtires  maintained  primarily  for  support- 
ing the  overhead  distribution  system. 

This  account  does  not  include  insulators. 

Note  A.^  Tlie  cost  of  repairing  poles  and  fixtures  that  carry  both  transmission 
and  distribution  conductors  should  be  apportioned  between  this  account  and  account 
No.  E522a,  "  Transmission  I'ole  and  Fixture  Repairs  ". 

Note  B.—  The  cost  of  replacement  of  towers  and  other  structures  maintained 
primarily  for  supporting  the  overhead  electric  construction  shall,  when  the  indi- 
vidual costs  of  the  same  equal  or  exceed  $100,  be  treated  through  the  appropriate 
capital  accounts.  When  the  Individual  cost  is  less  than  $100,  the  replacement 
may  be  charged  directly  to  this  account. 

E523b.  Distribution   Underground  Conduit  Repairs. 

Charge  to  tins  account  the  cost  of  maintaining  subways  and  underground 
conduits,  including  repairs  of  the  tube,  of  manholes,  of  paving  over  such 
subways  and  of  all  ducts  and  conduits,  but  not  any  repairs  of  conductors  or 
of  the  insulation  thereof. 

Note. — ^  The  cost  of  maintaining  (Including  patrolling  and  inspecting)  under- 
ground conduits  and  subways  which  carry  both  transmission  and  distribution  con- 
ductors should  be  apportioned  between  this  account  and  account  No.  E523a,  "  Trans- 
mission   Underground    Conduit    Uepairs  ". 

E534a.  Overhead  Distkiiiution  System  Repairs. 
Charge  to  this  account   the   cost  of  patrolling,   testing,   and   repairing  the 
overhead  conductors  in  the  distribution  system. 

E534b.  Edison  Tube  System  Repairs. 
Charge  to  this   account   the  cost  of   inspecting,   testing,  and  repairing  tb«» 
Edison  tube  system,  including  junction  boxes,  tubing  and  conductors,  coupling 
boxes,  etc. 

E534c.  Other  Underground  Distribution  System  Repairs. 
Charge  to  this  account  the  salaries  and  expenses  of  patrolmen,  testers,  etc., 
as  well  as  the  cost  of  repairing  damaged  subway  distribution  conductors. 

E535a.  Repairs  of  Electric  Services. 
Charge   to   this   accoiuit   the   cost   of   repairing  underground   and   overhead 
services  leading  from  the  mains  to  the  consumers'  premises. 


42  Public  Service  Commission,  Second  District 

E535b.  Repairs  of  Tbansfobmers. 
Charge  to  this  account  the  cost  of  labor  and  mat'Crial  consvimpd  in  main 
taining  transformers,  including  renewing  oil,  re-painting,  re-winding,  removal 
and  replacing;  also  repairs  of  such  switches  and  cut-outs  as  are  the  property 
of  the  corporation  in  consumers'  premises. 

E536a.  Electric  Meter  Operation. 

■Charge  to  this  account  the  salaries  and  expenses  of  superintendents  and 
clerks  in  the  meter  bureau,  and  also  that  portion  of  the  salaries  of  the 
engineering  staff  of  the  corporation  assignable  to  this  account ;  also  the  cost 
of  light,  heat,  ice,  water,  and  other  supplias  and  expenses  in  connection  with 
the  meter-testing  bureau;  and  the  cost  of  testing  meters  on  consumers' 
premises  or  in  meter  shops. 

E536b.  Electric  Meter  Repairs. 

Charge  to  thjs  account  the  cost  of  repairing  meters  in  the  distribution 
service,  including  new  parts,  new  jewels,  cleaning,  and  painting. 

V.  UTILIZATION  EXPENSES. 

541a.  Commercial  Arc  Labor. 
Charge  to  this  account  the  cost  of  labor  employed  in  trimming  and  in- 
specting arc  lamps  on  private  consumers'  premises  and  in  municipal  buildings. 

541b.    COMMKRCIAL   ArC    SUPPLIES. 

Charge  to  this  account  the  cost  of  all  supplies  (such  as  carbons,  globes, 
etc.)   for  arc  lamps  on  private  consumers'  premises, 

542.  Commercial  Arc  Repairs. 

Charge  to  this  account  the  cost  of  keeping  in  repair  private  consumers'  arc 
lamps  and  those  in  municipal  buildings;  including  such  matters  as  setting 
and  removing  lamps,  repairing  parts,  changing  for  repairs  and  adjustment, 
ajid  testing  during  adjustment  and  after  repairs. 

543a.  Commercial  Incandescent  Installation. 

Charge  to  this  account  the  cost  of  the  first  installation   of  incandescent 

lamps    on    consumers'    premises    (including    cartage    and    delivery    expenses) 

unless  consumer  is  charged  for  the  first  installation,  or  unless  it  is  proper 

to  charge  such  first  installation  to  capital.     (See  account  No.  E173,  page  16.) 

543b.  Commerci.vl  Incandescent  Renewals. 

Charge  to  this  account  the  cost  of  renewing  incandescent  lamps  on  con- 
sumers'   premises     (including    cartage    and    delivery    expense)     and    cost    of 
photometer! ng   incandescent    lamps.      Credit    to   this   account   any    rebate    re- 
ceived for  the  return  of  stubs,  or  allowances  relating  thereto. 
544a.  Inspection  of  Consumers'  Premises. 

Charge  to  this  account  the  cost  of  inspection  of  consumers'  premises,  includ- 
ing such  matters  as  the  charge  for  municipal  certificates,  charge  for  Board 
of  Fire  Underwriters'  inspection  certificates,  and  that  portion  of  the  salaries 
and  expenses  of  the  engineering  staff  or  of  other  departments  than  the  dis- 
tribution department  engaged  in  technical  work  properly  assignable  to  this 
account, 

544b.  Repairs  of  Consumers'  Installations. 

Charge  to  this  account  the  cost  of  all  labor  and  material  furnished  to 
consumers  for  inside  work  without  special  charge,  including  such  matters  a» 


Accounts  for  Electrical  Corporations      43 

attention  to  complaints  or  to  improving  the  character  of  service,  replacinj?  or 
repairing  wiring  fixtures  or  electric  appliances,  moving  appliances  from 
place  to  place  in  houses  and  re-connecting  the  same,  etc. 

545a.  Municipal  Street  Arc  Labor. 
Charge   to  this  account  the  cost   of   labor  employed   in  trimming  and   in- 
specting the  arc  lamps  of  the  municipal  street  lighting  system. 

545b.  Municipal  Street  Abo  Supplies. 
Charge  to  this  account  the  cost  of  carbons,  globes,  etc.,  for  the  arc  lamps 
of  the  municipal  street  lighting  system. 

546.  Municipal  Street  Arc  Repairs. 
Charge  to  this  account  the  cost  of  changing  location  of  lamp  posts,  chang- 
ing   lamps    for    repairs   and    adjustments,    renewals,    repairs    of    mast    arms, 
hangers,  poles,  ropes,  etc.,  and  painting  poles;   also  that  portion  of  the  are 
lamp   shop    expense    assignable   thereto. 

547a.  Municipal  Street  Incandescent  Installation. 
Charge   to  this  account  the   cost  of   the   first   installation  of   incandescent 
lamps    in   the   municipal    street    lighting    system,    unless    it    is    paid   by    the 
municipal  corporation,  or  the  lamps  are  of  such  character  that  it  is  proper 
to  charge  to  capital.      (See  account  No.  E173,  "'Glower  Lamps,"  page  16.) 

547b.  Municipal    Street    Incandescent    Renewals. 
Charge   to   this   account   the   cost   of   renewing   incandescent   lamps   in   the 
municipal   street  lighting  system. 

548.  Municipal  Street  Incandescent  Repairs. 

Charge  to  this  account  the  cost  of  repairing  municipal  incandescent  street 
lamps  and  fixtures. 

Note. —  This  does  not  include  items  chargeable  to  maintenance  of  poles  and 
their  fixtures,  oi"  of  subways,  or  conductors. 

VI.  COMMERCIAL  EXPENSES. 
E551.  Commercial  Administration — Electric. 
Charge  to  this  account  the  matters  prescribed  under  the  following  heads: 

a.  Commercial  Department  Indexing:  This  covers  the  cost  of  indexing 
meters,  including  indexers'  lamps. 

b.  Commercial  Department  Collecting :  This  covers  the  expense  of  the  col- 
lection bureau,  including  collectors'  salaries  or  commissions,  badges,  car 
fares,  and  delivering  bills. 

c.  Commercial  Department  Contracts :  This  covers  such  part  of  the  cost 
of  the  contract  department  as  is  not  assignable  to  the  Promotion  Ofiioe,  in- 
cluding attention   to  bill   questions. 

d.  Commercial  Department  Accounting:  This  covers  the  cost  of  keeping 
the  accounts  of  consumers,  being  a  proportion  of  the  salaries  and  expenses 
of  general  officer  and  assistants  in  charge  of  the  commercial  department, 
and  salaries  of  bookkeepers  and  all  clerks  in  the  accounting  department 
having  to  do  with  consumers'  accounts. 

e.  Commercial  Department  Miscellaneous:  This  covers  all  expenses  in- 
curred in  selling  electric  power  and  products,  in  determining  the  amount 
of   such   sales,   in  making  collections,  and   in   keeping   account  of   such   sales 


44         Public  Service  Commission,  Second  District 

and  collections  as  are  not  includible  in  the  accounts  of  the  indexing,  account- 
ing, collection,  and  contract  divisions,  or  in  the  following  accounts  for  pro- 
motion expenses. 

E552.  Pbomotion   Office   Expense  —  Electbio. 
Charge  to  this  account  the  matters  prescribed  under  the  following  heads: 

a.  Promotion  Management :  This  covers  the  cost  of  administration  of 
the  department  maintained  for  the  promotion  or  development  of  electric  con- 
sumption, including  that  portion  of  the  salaries  and  expenses  of  manage- 
ment and  clerks  in  agency  and  contract  departments  assignable  to  new 
business. 

b.  Demonstrations :  This  covers  the  cost  of  labor  and  expenses  incurred 
in  demonstrating  the  use  of  electric  lamps  and  appliances  for  the  purpose 
of  obtaining  new  business. 

c.  Other  Promotion  Office  Expense:  This  covers  the  office  expenses  of  the 
promotion  or  new  business  department. 

E553.  Advertising  —  Electbic. 
Charge  to  this  account  the  matters  prescribed  under  the  following  heads: 

a.  Advertising  Salaries  and  Expenses:  This  covers  the  salaries  and  per- 
sonal expenses  of  the  advertising  manager  and  clerks. 

b.  Advertising  Sundries:  This  covers  the  cost  of  commercial  advertising 
sundries,  including  booklets,  dodgers,  newspaper  advertisements,  posters, 
bulletins,  and  all   related  items. 

E554.  Canvassing  and  Soliciting  —  Electbic. 
Charge   to   this   account  all   expenses   incurred   in   soliciting  new  business, 
including  wages,  commissions,  and  personal  expanses  of  canvassers,  cost  of 
preparing  estimates,   engineering  advice  on  wiring,  etc.,  and  office  sundries 
in  connection  therewith. 

E555.  Promotion  Wibing  and  Devices. 
Charge  to  this  account  the  matters  prescribed  under  the  following  heads: 

a.  Promotion  Wiring:  This  covers  the  cost  of  wiring  in  consumers'  prem- 
ises furnished  without  special  charge  in  order  to  induce  new  business. 

b.  Promotion  Signs  and  Devices:  This  covers  the  cost  of  electric  signs  and 
other  devices  (including  delivery  and  connection  charges,  and  expenses  in 
connection  therewitli)  supplied  to  consumers  without  special  charge  in  order 
to  develop  new  business. 

VII.  GENERAL  AND  MISCELLANEOUS  EXPENSES. 

E833.  Saijvries  and  Expenses  of  General  Officers. 
Charge  to  this  account  the  salaries  and  traveling  and  incidental  expenses 
of  tlie  chairman  of  the  board,  president,  vice-president,  treasurer,  secretary, 
comptroller,  general  auditor,  general  manager,  assistant  general  manager, 
chief  engineer,  general  superintendent,  purchasing  agent,  and  all  other  officers 
whose  jurisdiction  extends  to  the  entire  system  and  whose  services  can  not 
be  satisfactorily  allocated  to  the  several  departments. 

E834.  Salaries  and  Expenses  of  General  Office  Clerks. 
Charge  to  this  account  the  salaries  and  traveling  and  incidental  expenses 
of  general   office  auditors,   bookkeepers,  cashiers,   paymasters,   stenographers. 


Accounts  foe  ELECxracAL  Cokpokations      45 

clerks  employed  in  counting;  cash,  and  all  other  clerks  employed  in  the  gen- 
eral office. 

NoTK. —  Cost  of  labor  of  clerks  in  the  commercial  department  shall  be  charged 
to  account  No.  E.5r>l,  ''Commercial  Administration — Electric".      (See  page  43.) 

ES3.5.  (JE^EKAL  Office  Supplies  and  Expenses. 

Charge  to  this  account  the  cost  of  office  supplies,  repairs  of  office  furniture, 
and  renewals  of  suoh  furniture  as  has  not  been  capitalized;  wages  of  jani- 
tors, porters,  and  messengers;  rent  of  rooms  in  office  buildings,  repairs  of 
such  rented  rooms,  and  all  other  miscellaneous  expenses  of  general  offices. 
Office  expenses  of  departmental  officers  must  be  charged  to  the  proper  depart- 
mental accounts. 

NoTK. —  Rents  charged  to  this  account  will  be  required  to  be  reported  separately. 
E836.  General  Law  Expenses. 

Charge  to  this  account  all  law  expenses  excejjt  those  incurred  in  the  de- 
fense and  settlement  of  damage  claims.  This  includes  salaries  and  expenses 
of  all  counsel,  solicitors,  and  attorneys,  their  clerks  and  attendants,  and 
expenses  of  their  offices;  cost  of  law  books,  printing  briefs,  legal  forms, 
testimony,  reports,  etc.;  fees  and  retainers  for  services  of  attorneys  not  regu- 
lar employees;  court  costs  and  payments  of  special,  notarial,  and  witness 
fees  not  provided  for  elsewhere;  expenses  connected  with  taking  depositions, 
and  all   law  and  court  expenses  not   provided  for  elsewhere. 

Note. —  Tlie  compensation  of  the  general  solicitor  or  counsel  or  other  attorneys 
engaged  partly  in  the  defense  or  settlement  of  damage  suits  and  partly  in  other 
legal  work,  should  be  properly  apportioned  between  this  account  and  account 
No.  E847b,   "  Law   Expenses  Connected  with   Damages  ". 

E837.  Miscellaneous  General  Expenses. 

Charge  to  this  account  the  cost  of  telephone  service,  telegrams,  and  other 
miscellaneous  expenses  (including  all  expense  specially  incurred  in  connection 
with  the  utilization  and  sale  of  byproducts,  such  as  battery  and  other  chem- 
ical waste,  etc.)  connected  with  the  general  management  not  otherwise  pro- 
vided  for. 

E838.  Insurance. 

Charge  to  this  account  premiums  paid  to  insurance  companies  for  fire, 
fidelity,  boiler,  casualty,  burglar,  and  all  other  insurance;  also  amounts  set 
aside  as  an  insurance  reserve. 

Note. —  In  their  reports  to  the  I'ublic  Service  Commission  corporations  will  be  re- 
quired to  report  the  charges  made  to  this  account  for  the  various  kinds  of  insur- 
ance, and  for  self -insurance. 

ES39a.  Relief  Department  Expenses. 
Charge   to   this   account   all   salaries  and   e.xpenses   incurred   in   connection 
with   conducting  a   relief   department;    also   contributions   made  to  such  de- 
partment. 

E839^b.  Pensions. 
Charge  to  this  account  all  pensions  paid  to  retired  employees,  and  expenses 
in  connection  therewith. 

E840.  Electric  Franchise  Requirements. 
Charge  to  this  account  the  cost  of  all  energy  and  materials  and  supplies 
furnished  to  municipal  corporations  in  compliance  with  franchise  require- 
ments and  for  which  no  payment  is  received  by  the  corporation;  also  of  all 
direct  expense,  such  as  paving  and  other  like  matters,  incurred  in  compliance 
with  such  requirements  and  for   which  no  reimbursement  is  received  by  the 


46  Public  Service  Commission,  Second  District 

corporation.  Amounts  charged  to  this  account  for  which  there  is  no  direct 
mosey  outlay  shall  be  credited  to  the  below  provided  account,  Xo.  E853, 
"Duplicate  Electric  Charges  —  Cr."      (See  page  48.) 

E842.  General  Amortization  —  Electric. 

Charge  to  this  account  montli  by  month  the  amount  estimated  to  be  neces- 
sary to  cover  such  wear  and  tear  and  obsolescence  and  inadequacy  as  have 
accrued  during  the  month  in  the  tangible  electric  capital  of  the  corporation, 
such  portion  of  the  life  of  intangible  fixed  capital  as  has  expired  or  been 
consumed  during  the  month,  and  the  amount  estimated  to  be  necessary  to 
provide  a  reserve  to  cover  the  cost  of  property  destroyed  by  extraordinary 
casualties;  less  the  amounts  chargad  for  that  month  to  the  various  repair 
accounts  in  Electric  Operating  Expenses.  The  amount  charged  (or  credited) 
to  this  account  shall  be  concurrently  credited  (or  charged)  to  the  reserve 
account  No.   374,  "Accrued  Amortization  of  Capital  "'.      (See  page  27.) 

Note  A. —  Until  otherwise  ordered,  the  "  amount  estimated  to  be  necessary  to 
cover  such  wear  and  tear  and  obsolescence  and  inadequacy  as  have  accrued  dur- 
ing "  any  month  shall  be  based  on  a  rule  determined  by  the  accounting  corporation. 
Such  rule  may  be  derived  from  a  consideration  of  the  said  corporation's  history 
and  experience  during  the  preceding  five  years,  and  the  accrual  may  be  on  the 
basis  of  kilowatt-hours  sold.  Amortization  of  intangible  capital  shall  likewise  be 
based  on  rule.  Whatever  may  be  its  basis,  such  rules  and  a  sworn  statement  of 
the  facts  and  expert  opinions  and  estimates  upon  which  they  are  based  shall  be 
filed  with  the  Public  Service  Commission  on  or  before  January  1,  1909;  each 
amendment  of  any  such  rule  and  a  sworn  statement  of  the  facts  and  expert  opinions 
and  estimates  upon  which  such  amendment  is  based  shall  be  filed  with  the  Public 
Service  Commission  before  it  is  used  by  the  accounting  corporation,  and  shall  show 
the  date  when  it  is  to  be  effective.  Such  rules  and  statements  shall  be  filed  upon 
sheets  9%  inches  by  12  inches  and  shall  be  entitled  "  Rule  of  the  (here  naming  the 
accounting   corporation)    concerning   Amortization   of  Capital". 

NoTK  B. —  When  any  capital  is  retired  from  service,  the  amount  (estimated  if 
not  known)  originally  charged  to  a  capital  account  in  respect  thereof  shall  be 
credited  to  such  capital  account,  and  (except  as  provided  in  account  No.  ElOO, 
"  Fixed  Capital,  December  31,  190S,")  the  original  money  cost  of  such  capital,  less 
salvage,  if  any,  shall  be  charged  to  the  reserve  account,  "Accrued  Amortization  of 
Capital,"  any  necessary  adjusting  entry  being  made  in  the  proper  account  under 
'•  Corporate  Surplus  or  Deficit ".  Where  capital  Is  substantially  continuous  and 
can  not  be  satisfactorily  Individualized,  it  shall  be  kept  in  efficient  operating  con- 
dition through  repair,  and  the  renewals  and  replacements  of  parts  thereof  shall  be 
considered  repairs.  In  the  case  of  buildings,  towers,  bridges,  trestles,  and  other 
separate  structures  capable  of  l>eing  readily  individualized,  charges  to  this  account 
must  be  sufficient  to  provide  (In  respect  of  such  capital  and  except  as  provided  in 
account  No.  ElOO,  "  Fixed  Capital,  December  31,  1908,")  in  the  account  "Accrued 
Amortization  of  Capital  "  by  the  time  such  structures  go  out  of  service  a  reserve 
equal  to  the  original  money  cost  thereof,  less  salvage,  to  which  account  such 
original  cost,  less  salvage,  shall  be  charged. 

E845.  Electric  Expenses  Transferred  —  Or. 

Credit  to  this  account  the  proportion  of  operating  expenses  (including 
depreciation  and  other  amortization  as  well  as  repairs)  chargeable  to  other 
coordinate  departments  (such  as  gas  or  street  railroad)  within  the  same 
corporation,  but  defrayed  in  the  first  instance  by  the  electric  department. 

NoTK. —  Do  not  credit  to  this  account  any  allowance  in  the  nature  of  rent  or 
return  upon  the  cost  or  value  of  property. 

E84G.  Joint  Operating  Expense  —  Cr. 
When  any  plant  or  equipment  is  maintained  or  operated  by  the  accounting 
corporation  for  the  joint  benefit  of  itself  and  others  under  an  arrangement 


Accounts  foe  Electbicai.  Coepoeations      47 

for  apportioning  (on  the  basis  of  the  relative  amounts  of  benefit  to  the 
several  participants)  the  operating  expenses,  the  portion  of  such  expenses 
chargeable  to  others  under  the  arrangement  shall  be  credited  to  this  account. 
The  portion  so  credited  must  not  include  any  allowance  for  profit  or  return 
upon  the  value  of  such  property. 

Note  A. —  The  foregoing  should  be  read  in  connection  with  the  definition  of 
revenue  account  No.  425,  "Joint  Electric  Rent  Uevenue  ".      (See  page  33.) 

Note  B. —  In  the  case  of  the  production  of  power  part  of  which  is  transferred 
to  another,  If  the  arrangement  under  which  such  production  occurs  does  not  provide 
for  the  apportionment  of  expenses,  the  entire  amount  charged  for  the  portion  sup- 
plied is  to  be  ci'edited  to  the  appropriate  revenue  account  covering  the  sale  of 
power.      (See  accounts  Nos.  404,  407,  409,  410,  and  411,   page  32.) 

E847a.  Accidents  and  Damaok.s. 
Charge  to  this  account  all  expenses  (other  than  law  expenses  provided  for 
in  the  succeeding  account)  on  account  of  persons  killed  or  injured  and 
property  damaged  in  connection  with  the  operation  of  the  plant,  as  enumer- 
ated under  the  following  heads,  which  must  be  separately  shown  in  annual 
reports  to  the  Public  Service  Commission: 

a.  Claim  Department  Expense:  This  head  includes  salaries  and  expenses 
of  claim  agents,  investigators,  adjusters,  and  others  engaged  in  the  investi- 
gation of  accidents  and  adjustment  of  claims. 

b.  Medical  Expenses:  This  head  includes  salaries,  fees,  and  expenses  of 
surgeons  and  doctors;  nursing,  hospital  attendance,  medical  and  surgical 
supplies;  fees  and  expenses  of  coroners  and  undertakers;  and  contributions 
to  hospitals. 

c.  Injuries  to  Employees:  This  head  includes  amounts  paid  in  settle- 
ment of  claims  of  employees  for  injuries  arising  in  the  course  of  their  em- 
ployment;  also  wages  paid  to  disabled  employees  while  off  duty. 

d.  Other  Personal  Injuries  and  Property  Damage:  This  head  includes 
amounts  paid  in  settlement  of  claims  of  persons  other  than  employees  for 
personal  injuries  sustained  in  connection  with  the  operation  of  the  plant; 
also  amounts  paid  in  settlement  of  claims  for  damage  to  property  not  owned 
by  the  accounting  corporation. 

e.  Other  Accident  Expenses. 

Note. —  If  It  is  desired  that  the  charge  to  operating  expenses  on  account  of  in- 
juries and  damages  shall  he  upon  some  arbitrary  basis,  the  amount  so  charged  shall 
be  credited  to  account  No.  381,  "  Casualties  and  Insurance  Reserve,"  and  the  actual 
disbursements  above  enumerated  shall  be  charged  against  such  reserve  account. 

E847b.  Law  Expenses  Connected  with  Damages. 
Charge  to  this  account  all  law  expenses  in  connection  with  the  defense  or 
settlement  of  damage  claims,  including  — 

a.  Salaries  and  Expenses  of  Attorneys:  A  proper  proportion  of  the 
salary  and  expenses  of  the  general  solicitor  or  counsel,  and  salaries,  fees,  and 
expenses   of   attorneys   engaged   in  this   work. 

b.  Court  Costs  and  Expenses:  Fees  of  court  stenographers,  expenses  con- 
nected with  taking  depositions,  and  other  court  expenses. 

c.  Law  Printing:  Cost  of  law  books,  and  cost  of  pr'nting  briefs,  court 
records,  and  similar  papeis. 

Note  A. —  In  their  annual  reports  to  the  Public  Service  Commlssfoj  corporations 
will  be  required  to  classify  the  charges  to  this  account  under  the  thee  heads, 
(a),  (b)  and  (c),  above  i;ivcn. 


48  PcBLic  Seuvice  Commission,  Second  District 

NoTK  B. —  The  fomiK'Hsation  of  the  g<'n(MMl  sdlicitor  or  counsel  and  other  attor- 
neys engaffed  partly  in  the  defense  or  settlement  of  damase  suits  and  partly  In 
other  legal  work  should  be  properly  apportioned  between  this  aecount  and  account 
No.    E836,   "General   Law   Expenses". 

Note  C. —  If  It  is  desired  that  the  charge  to  operating  expenses  on  account  of 
law  expenses  In  connection  with  damages  shall  be  upon  some  arbitrary  basis,  the 
amount  so  charged  shall  be  credited  to  account  No.  381,  "  Casualties  and  Insurance 
Reserve,"  and  the  actual  disbursements  above  enumerated  shall  be  charged  against 
such   reserve  account. 

E848.  Gk.nkral  Stationery  and  Pbinting. 

Charge  to  this  account  all  expenses  for  stationery  and  printing,  stationery 
supplies,  and  postage,  except  as  hereinafter  provided: 

The  cost  of  printing  briefs  and  other  legal  papers  shall  be  charged  to 
account  No.  E8.3G,  "General  Law  Expenses,"  or  No.  E847b,  "Law  Ex|)enses 
Connected  with  Damages,"  in  accordance  with  the  purpose  of  the  printing. 

The  cost  of  printing  signs,  posters,  and  other  advertising  matter  shall  be 
charged  to  account  No.  E5o3,  "Advertising — Electric". 

The  cost  of  such  mechanical  calculators,  typewriters,  duplicating  machines, 
and  other  ollice  appliances  as  are  not  properlj'  capitalized,  shall,  if  for  use  in 
general  offices,  be  cluugi'd  to  account  No.  E835,  "  General  Oflice  Supplies  and 
Expenses";  or  if  for  the  use  of  departmental  offices,  to  the  proper  depart- 
mental  accounts. 

E850.  Store  ICxpenses. 

Charge  to  this  account  all  salaries  and  expenses  in  connection  with  store- 
rooms, including  cost  of  sending  material  and  supplies  from  general  store- 
rooms to  branch  storerooms,  and  the  collection  of  scrap  material.' 

E85L  SxABLii  Expenses. 

Charge  to  this  account  the  cost  of  feed,  keep,  and  shoeing  of  horses,  wages 
of  stablemen,  hostlers,  veterinary  expenses,  and  all  other  expenses  of  stabling 
horses;  also  the  cost  of  repairing  harness  and  vehicles. 

Note. —  The  cost  of  horses  purchased  to  replace  others  should  be  cha:y:cd  to 
account   No.   El 22,   "  General   Equipment  ". 

E852.   Undistributed   Adjustments  —  Balance. 

At  least  once  a  year  an  inventory  of  materials  and  supplies  shall  be  taken, 
and  the  diff'erence  (in  respect  of  any  particular  class  of  materials  and  sup- 
plies) between  the  ledger  and  inventory  balances  debited  or  credited  to  thii 
account  in  case  it  can  not  be  a.ssigne<l  to  a  specific  account.  Credit  to  this 
account  all  discounts  recovered  through  the  prompt  payment  of  bills  for 
materials  and  supplies  consumed  in  operation,  unless  such  discounts  are 
applied  to  the  particular  bills. 

Note. —  Where  materials  and  supplies  have  been  used  In  construction  as  well  as 
In  operation,  a  suitable  proportion  of  the  shortages  or  overages  disclosed  by  the 
inventory  may  be  debited  or  credited  to  account  No.  E285,  "  Miscellaneous  Con- 
struction Expenditures  ". 

E853.  Duplicate  Electric  Charges  —  Cr. 

Credit  to  this  account  all  charges  made  to  any  accounts  in  electric  operating 
expenses  in  respect  of  any  electric  power  or  other  product  of  electric  opera- 
tions of  t^he  corporation  consumed  therein. 

17.  Expenses  of  Outside  Operations. —  The  detailed  expense  accounts  for 
other  than  ekctric  optrations  will  be  elsewhere  provided  for. 


Accounts  fok  Electrical  Coeporations      49 

i8.  Tax  accounts. —  An  account  shall  be  kept  of  the  taxes  chargeable  against 
each  particular  class  of  operations,  and  one  for  those  chargeable  against  non- 
operating  revenues.  Each  tax  account  shall  be  appropriately  entitled  (as 
f.  g.,  "  Taxes  Assignable  to  Electric  Operations,"  "  Taxes  Assignable  to  Nou- 
operating  Revenues,"  etc.),  and  shall  be  so  kept  as  to  show  separately  the 
following: 

State    Franchise    Tax    on    Capital    IStock, 

Slate    Franchise    Tax    on    Gross    Earnings, 

Special  Franchise  Tax, 

Taxes  on  Land   (exclusive  of  improvamenta). 

Taxes  on  Improvements  on  Lands, 

Taxes  on  Personal  Property, 

Other  Taxes    (showing  in  detail). 

To  each  tax  account  there  shall  be  charged  monthly  '"-he  amount  of  taxes 
accruing  during  the  month,  and  such  amount  shall  be  concurrently  credited 
to  the  account  "  Taxes  Accrued  "  ( or  to  the  account  "  Prepaid  Taxes,"  if  such 
tax  is  prepaid).  The  amount  of  taxes  accruing  during  any  month  shall, 
where  the  levy  is  unknown,  be  estimated  as  nearly  as  may  be,  and  when  the 
levy  is  ascertained  the  matter  shall  be  adjusted  during  the  remainder  of  the 
tax  year.  For  example,  if  at  the  beginning  of  a  tax  year  the  taxes  on  a 
particular  class  of  property  are  estimated  to  be  $600  for  the  year,  the  monthly 
charge  on  account  of  such  tax  should  be  $50  until  the  amoupt  of  the  lexy 
becomes  known.  If  during,  say  the  tifth  month,  it  is  found  that  the  levy 
for  the  year  is  $640,  there  will  already  have  been  charged  up  four  months  at 
$50  per  month,  leaving  $440  to  be  charged  during  the  remainder  of  the  year, 
or  $55  for  the  fifth  month  and  each  month  thereafter  during  the  remainder  of 
the  year. 

,  Such  taxes  as  pertain  to  two  or  more  classes  of  operations  or  to  non- 
operating  revenues  should  be  <ipportioned  with  regard  to  such  operations  and 
non-operating  revenues  upon  an  equitable  basis,  which  basis  will  be  required 
to  be  reported  in  the  annual  report  of  the  corporation  to  the  Public  Service 
Commission. 

ig.  Uncollectible  Bills. —  For  uncollectible  electric  bills  the  following  ac- 
count is  provided: 

E870.  L^NCOLLECTIBLE  Electbic  Biixs. 

When,  after  a  reasonably  diligent  effort  to  collect,  any  account  stated  for 
electric  energy  sold  has  proved  impracticable  of  collection,  it  shall  be  charged 
to  this  account  and  credited  to  the  account  receivable  in  which  theretofore 
charged. 

20.  Definitions  of  Non-operating  Revenue  accounts. —  In  the  following  defini- 
tions of  accounts  the  letters  and  numbers  prefixed  to  the  titles  are  inserted 
solely  for  convenience  of   reference  and  are  no  part,  of   the  titles  or.  of   the 

definitions:  

EDO  la.  Rent  Accrued  fbom  Lease  of  Electric  Plant. 

Credit  to  this  account  monthly  as  they  accrue  all  revenues  flowing  to  the 
corporation  from  its  interests  in  electric  plant  or  equipment  held  by  others 
under  some  form  of  lease  whereby  it  surrender3  possession  of  such  property. 
This  account  contemplates  that  the  taxes  on  property  so  held  are  payable  by 
the  tenant  in  possession  and  charged  by  him  to  the  appropriate  tax  account. 


50  Public  Service  Commission,  Second  District 

If  itnder  the  contract  of  lease  such  taxes  are  payable  by  the  lessor  or  its 
assignee,  such  taxes  shall  be  cliarged  to  this  revenue  account  and  not  to  any 
of  the  lessor's  tax  accounts,  nor  to  any  of  its  expense  accounts. 

E901d.  Miscellaneous  Rent  Revenues. 

Credit  to  this  account  monthly  as  they  accrue  all  miscellaneous  rent  reve- 
nues flowing  to  the  corporation  as  a  return  upon  leased  property  other  than 
electric  plant  and  equipment.     Such  revenues  shall  be  cJassitied  as  follows: 

Leasehold  Reventies:  That  is  to  say,  all  revenues  flowing  to  the  corpora- 
tion from  its  interests  in  property  held  by  others  under  any  lease  the  entire 
term  of  which  is  greater  than  one  year.  This  contemplates  that  the  taxes 
on  property  so  held  are  payable  by  the  teivant  in  possession  and  cliarged  by 
him  to  the  appropriate  tax  account.  If  under  the  contract  of  lease  such  taxes 
are  payable  by  the  lessor  or  its  assignee,  such  taxes  shall  be  charged  to  this 
revenue  account  and  not  to  any  of  tha  lessor's  tax  accounts,  nor  to  any  of 
its  expense  accounts. 

Other  Kent  Revenues:  That  is  to  say,  all  revenues  flowing  to  the  corpora- 
tion from  its  interests  in  property  held  by  others  under  any  lease  or  contract 
for  a  term  not  to  exceed  one  year  from  the  beginning  of  the  term,  or  held 
at  will  or  upon  sufferance.  This  account  contemplates  that  the  taxes  on  prop- 
erty of  this  character  shall  be  paid  by  tJie  landlord  and  charged  to  the  ap- 
propriate tax  account.  If  under  the  contract  covering  the  holding  for  terms 
of  one  year  or  less,  or  at  will,  the  taxes  are  to  be  paid  by  the  tenant,  the 
amount  of  such  taxes  shall  be  credited  month  l^  month  to  this  account  a.-* 
they  accrue,  and  shall  correspondingly  be  charged  to  the  tax  account  covering 
taxes  on  property  of  this  character. 

Entries  in  this  account  must  be  made  in  such  wise  as  to  show  separately 
the  classes  above  indicated,  which  will  be  required  to  be  stated  separately  in 
the  annual  reports  to  the  Public  Service  Commission. 
E902.  Intebest  Re\enues. 

Credit  to  this  account  monthly  as  it  accrues  all  — 

Interest  from  Bound  Investments :  That  is  to  say,  all  interest  accruing  to 
the  corporation  upon  such  of  its  interest-bearing  free  investments  (as  here- 
inbefore defined)  as  are  liabilities  of  solvent  concerns  and  individuals. 

Interest  from  Free  Investments:  That  is  to  say,  all  interest  accruing  to 
the  corporation  upon  such  of  its  interest-bearing  free  investments  (as  here- 
inbefore defined)   as  are  liabilities  of  solvent  concerns  and  individuals. 

Interest  from  Other  Sources:  That  is  to  say,  all  interest  accruing  to  the 
corporation  upon  its  interest-bearing  current  assets,  special  deposits,  and  all 
ether  assets  not  provided  for  under  the  two  foregoing  heads,  where  such 
interest  is  a  liability,  actual  or  contingent,  of  solvent  concerns  and  individuals. 

Entries  in  this  account  must  be  made  in  such  wise  as  to  show  separately 
the  classes  above  indicated,  which  will  be  required  to  be  stated  separately 
in  the  annual  reports  to  the  Public  Service  Commission. 
E903.  Dividend  Revenues. 

Credit  to  this  account  at  their  cash  value  and  as  of  the  date  when  col- 
lectible, all  — 

Dividends  on  Bound  Investments:  That  is  to  say,  all  dividends  declared 
by  solvent  concerns  upon  stocks  held  by  the  corporation  among  its  bound 
investmenta. 


Accounts  fob  Electrical  Cokpokations      61 

Dividends  on  Free  Investments:  That  is  to  say,  all  dividends  declared  by 
solvent  concerns  upon  stocks  held  by  the  corporation  among  its  free  invest- 
ments. 

Entries  in  this  account  must  be  made  in  such  wise  as  to  show  separately 
the  classes  above  indicated,  which  will  be  required  to  be  stated  separately  iu 
the  annual  reports  to  the  Public  Service  Commission. 

E904.  Profits  from  Operations  of  Others. 

Whenever,  in  accordance  with  the  terms  of  any  contract,  the  corporation 
is  entitled  to  participate  in  the  profits  resulting  from  the  operations  of  others, 
all  revenues  accruing  to  the  corporation  from  such  source  shall  be  credited 
to  this  account. 

Note. —  This  account  does  not  include  any  dividends  on  stocks.  Such  dividends 
sliould  be  credited  to  account  No.  E903,  "  Dividend  Revenues  ". 

E905.  Miscellaneous  Non-opebating  Revenues. 
To  this  account  shall  be  credited  all  non-operating  revenues  accruing  to  the 
corporation  and  not  provided  for  in  any  of  the  foregoing  accounts. 

21.  Definition  of  Non-operating  Revenue  Deductions  account. —  To  an  ac- 
count entitled  "  Non-operating  Revenue  Deductions  "  shall  be  charged  all  mat- 
ters provided  for  under  the  following  sub-accounts: 

o.  Rent  Expense:  This  sub-account  includes  all  matters  provided  for  under 
the  following  two  heads: 

Leasehold  Expense:  That  is  to  say,  all  expense  arising  in  connection  with 
the  procuring  of  revenues  from  leaseholds  having  terms  greater  than  one  year, 
including  the  cost  of  negotiating  contracts,  advertising  for  tenants,  fees  paid 
conveyancers,  collector's  commissions,  cost  of  enforcing  payment  of  rent,  cost 
of  ousting  tenants,  etc.,  and  all  other  expense  arising  in  connection  with  such 
leaseiiolds.  This  applies  only  to  leases  conveying  the  property  out  of  the 
possession  of  the  corporation,  and  it  includes  the  expense  accruing  while  the 
property  is  idle  and  awaiting  an  occupant.  This  head  includes  cost  of  maint*'- 
nance  of  the  property  when  such  cost  is  borne  by  the  corporation.  Such 
maintenance  includes  depreciation  as  well  as  reparable  wear  and  tear.  It 
does  not  include  taxes. 

Other  Kent  Expense:  This  head  is  analogous  to  the  preceding  head  "  Lease- 
hold Expense,"  and  differs  from  that  only  in  that  this  provides  for  expense  in 
connection  with  property  let  for  a  term  of  one  year  or  less. 

b.  Interest  Expense:  This  sub-account  includes  all  expense  arising  in 
connection  with  procuring  interest  upon  investments,  such  as  expense  of  col- 
lection, expense  of  investigating  delay  in  paj^ment,  expense  of  enforcing  pay- 
ment, and  the  like.     It  does  not  include  taxes  on  such  investments. 

c.  Dividend  Expense:  This  sub-account  includes  all  expense  arising  in 
connection  with  the  collection  of  dividends  on  stocks  of  other  corporations ; 
a,lso  all  expense  incurred  in  the  investigation  of  the  affairs  of  the  corporations 
whose  stocks  are  held,  whether  for  the  purpose  of  detecting  mismanagement 
or  for  the  purpose  of  inducing  the  declaration  of  dividends,  and  all  expense 
connected  with  enforcing  payment  of  dividends  when  declared.  It  does  not 
include  taxes  on  such  investments. 

d.  Otiikrs'  Operations  Expense:  This  sub-account  includes  the  cost  of 
neg«)Liating  contracts  whcreunder  the  corporation  is  to  participate  in  profits 


52  Public  Service  Commission,  Second  District 

resulting  from  the  operations  of  others;  also  all  expense  of  collecting  the  cor- 
poration's proportion  of  such  profits,  and  all  expense  connected  with  procur- 
ing the  modification  or  the  di--solution  of  any  such  contract. 

e.  Miscellaneous  Non-opekating  Expense-.  This  sub-account  includes 
all  non-operating  expense  (as  hereinbefore  defined)  which  is  not  provided 
for  in  the  forgoing  sub-accounts. 

/.  NoN-OPERATii\G  TAXES:  This  sub-account  includes  all  taxes  accruing 
upon  non-operating  property  and  all  assignable  to  non-operating  revenues. 

g.  Uncollectible  Non-operatixg  Revenues:  When  any  non-operating 
revenues  are  judged  by  the  corporation  to  be  uncollectible,  the  amount  thereof 
shall  be  credited  to  the  accoimt  in  which  theretofore  charged,  and  charged 
to  the  account  "  Non-operating  Revenue  Deductions  "  under  the  head  of  "  Un- 
collectible Non-operatiug  Revenues  ". 

NoTK. —  In  annual  reports  of  corporations  to  the  Public^  Service  Commission  this 
account  will  be  required  to  be  fully  analyzed. 

22.  Income  Deductions. —  The  sum  total  of  the  credit  balances  in  the  revenue 
accounts  for  any  particular  operation  at  the  close  of  a  fiscal  period  gives 
the  gross  revenue  from  that  operation  for  that  period.  This  gross  revenue 
diminished  by  the  operating  expenses,  the  taxes,  and  the  uncollectible  bills 
assignable  to  such  operation  for  the  period,  gives  the  income  from  that  opera- 
tion for  the  period.  Similarly  for  the  non-operating  revenues,  the  non-operat- 
ing expenses,  and  the  non-operating  taxes. 

The  aggregate  of  the  incomes  from  the  several  operations  and  the  non- 
operating  income  is  the  gross  income  applicable  to  corporate  and  leased  prop- 
erties. As  has  before  been  said,  the  gross  income  is,  in  the  usual  case,  subject 
to  various  compulsory  deductions,  and  these  are  hereinafter  called  Income 
Deductions. 

23.  Definitions  of  Income  Deductions  accounts. —  In  the  following  definitions 
the  letters  and  numbers  prefixed  to  the  titles  of  the  several  accounts  are 
inserted  solely  for  convenience  of  reference  and  are  no  part  of  the  titles  or 
of  the  definitions: 

921.  Interest  Deductions. 

Charge  to  this  account  monthly  (or  as  otherwise  below  directed)  all  mat- 
ters provided  for  under  the  following  five  heads: 

Absolute  Interest  Accrued  on  Funded  Debt:  This  head  includes  all  interest 
accruing  absolutely  on  the  outstanding  funded  debt  of  the  corjwration. 

Contingent  Interest  Accrued  on  Funded  Debt:  This  head  includes  when  the 
contingency  occurs  all  interest  accruing  contingently  on  the  outstanding  funded 
debt  of  the  corporation.  This  includes  such  matters  as  interest  on  income 
bonds. 

Interest  Accrued  on  Receiver'a  Certificates:  This  head  includes  all  interest 
accruing  on  receiver!?  certificates  which  are  liens  upon  the.  .property  of  the 
corporation  or  any  p^^rt  pf.  it. ....  

Interest  Accrued  on  Other.  Unfunded  Debt:.  This  head  includes  all  interest 
accruing  on  all  imfunded  debt  of  the  corporation  except  receiver's  certificates. 

Interest  Accrued  on  Debenture  Stocks:  This  head  includes  ail  interest  ac- 
cruing on  the  outstanding  debenture  stocks  of  the  corporation. 

Entries  in  the  account  "  Interest  Deductions  "  must  be  made  in  such  wise 
as  to  show  separately  the  classes  above  indicated,  which  will  be  required  to 
be  stated  separately  in  the  annual  reports  to  the  Public  Service  Commission. 


Accounts  fob  Electrical  Corporations      53 

922a.  Rent  fob  Lease  of  Other  Electric  Plant. 
Charge  to  this  account  monthly  all  amounts  accrued  against  the  account- 
ing corporation  for  rent  of  electric  plant  and  equipment  which  it  holds  under 
soma  form  of  lease  from  another  company  or  corporation  and  of  which  it  has 
the  exclusive  possession.  Taxes  accrued  on  such  plant  and  equipment  shall 
not  be  charged  to  this  account  but  to  the  appropriate  Taxes  account.  If  such 
taxes  are  (under  the  contract  of  lease)  payable  by  the  lessor  or  reversioner, 
they  shall  be  credited  to  this  account  and  charged  to  the  appropriate  Taxes 
account.  Such  taxes,  when  paid  by  the  lessor  or  reversioner,  shall  be 
charged  to  its  rent  revenue  account  and  not  to  its  Taxes  account,  to  the  end 
that  taxes  upon  such  plant  and  equipment  shall  be  reported  by  the  corpo- 
ration in  possession. 

922.  Otheb  Rent  Deductions. 

Charge  to  this  account  the  matters  provided  for  in  the  following  sub- 
accounts : 

f.  Joint  Facility  Rents:  Where  any  plant  or  equipment  is  maintained 
or  operated  by  another  corporation  for  the  joint  benefit  of  the  accounting  cor- 
poration and  others  under  a  joint  arrangement  for  sharing  the  expense  (on 
the  basis  of  the  relative  amounts  of  benefit  to  the  several  participants),  if 
such  joint  arrangement  provides  for  including  in  the  charge  against  the  ac- 
counting corporation  any  pure  rent,  profit,  or  return  upon  such  plant  or 
equipment  over  and  above  depreciation  and  other  expense  of  maintenance 
and  operation,  such  pure  rent,  or  profit,  or  return  upon  property  shall  be 
charged  to  this  sub-account. 

NoTK. —  This  should  be  read  in  connection  with  revenue  account  No.  425,  "  Joint 
Electric  Rent  Revenue".     (See  page  33.) 

g.  Miscellaneous  Rent  Deductions:  This  sub-account  includes  all  mis- 
cellaneous rents  payable  not  elsewhere  provided  for. 

NOTK  A. —  Rents  for  furnished  offices  (and  for  office  rooms  In  office  buildings 
heated  and  lighted  by  the  landlord)  should  not  be  charged  to  this  account,  but  to 
the  appropriate  expense  account. 

Note  B. —  Entries  in  this  account  must  be  made  in  such  wise  as  to  permit  an 
analysis  In  the  annual  report  of  the  corporation  in  accordance  with  the  sub- 
accounts above  defined. 

923.  Sinking  Fund  Accruals. 

Charge  to  tliis  account  month  by  month  all  accruals  required  to  be  made 
to  sinking  funds  in  accordance  with  the  provisions  of  mortgages  or  other 
contracts  requiring  the  establishment  of  sinking  funds.  All  accruals  to  sink- 
ing or  other  funds  created  voluntarily  by  the  corporation  and  not  in  pursu- 
ance of  the  provisions  of  any  mortgage  or  other  contract  or  of  the  require- 
ments of  law  shall  be  excluded  herefrom. 

924.  Guaranties  of  Periodic  Payments. 
Charge  to  this  account  all  unsecured  accruals  of  obligations  arising  under 
contracts  wliereby  the  corporation  has  guaranteed  the  annual  or  more  fre- 
Huent  periodic  payment  of  money  or  performance  of  other  obligation  on  the 
part  of  another  corporation  or  person,  and  because  ef  the  default  of  such 
other  corporation  or  pereon  the  liability  of  the  present  corporation  has  be- 
come actual.  This  account  does  not  include  such  matters  as  guaranties  of 
payment  of  principal  of  funded  debt  and  other  similar  things  relating  to  a 
series  of  years,  nor  does  it  include  any  guaranties  for  which  the  corporation 


54  Public  Sekvicb  Commission,  Second  Disteict 

haa  protected  itself  through  taking  ample  security.  If  insufficient  security 
has  been  taken  in  respect  of  sucli  annual  or  more  frequent  payments,  the 
unsecured  portion  thereof  shall  be  charged  to  this  account. 

925.  IjOSs  on  Opebations  of  Others. 
Whenever  in  accordance  with  the  terms  of  any  contract  tlie  corporation  is 
bound  to  contribute  toward   reimbursement  of  the  losses  resulting  from  the 
operations  of  others,  all  liabilities   accruing  to  the  corporation  from    such 
source  shall  be  charged  to  this  account. 

926.  Otheb  Contractual  Deductions  from  Income. 

Charge  to  this  account  month  by  month  all  contractual  liabilities  arising 
from  annual  or  other  more  frequent  periodic  matters  and  not  includible  in 
any  of  the  foregoing  accounts.  This  account  includes  only  deductions  from 
income  and  not  any  liabilities  arising  in  exchange  for  goods  or  other  things 
purchased. 

927.  Amortiz.\tion  of  Landed  Capital. 

Charge  to  this  account  at  the  close  of  any  fiscal  period  such  portion  of 
the  original  money  cost  (estimated  if  not  known)  of  landed  capital  as  is 
necessary  to  cover  the  proportion  of  the  life  thereof  expired  during  sucli 
period. 

Note  A. —  The  amounts  charged  to  this  account  shall  be  concurrently  credited  to 
account  No.  374,  "Accrued  Amortization  of  Capital".      (See  page  27.) 

Note  B. —  When  any  landed  capital  expires  or  is  otherwise  retired  from  service 
(as  e.  g.,  through  sale),  the  capital  account  or  other  indicant  account  (if  anyi 
originally  charged  therewith  shall  be  credited  with  the  amount  originally  charged, 
the  account  "Accrued  Amortization  of  Capital  "  shall  be  debited  with  all  amounts 
theretofore  credited  to  such  account  In  respect  of  such  landed  capital  so  going  out 
of  service,  the  appropriate  account  shall  be  debited  with  the  proceeds  of  sale  (if 
any),  and  any  necessary  adjustment  shall  be  made  through  the  "Corporate  Surplus 
or   Deficit "   account. 

928.  Amortization  of  Debt  Discount  and  Expense. 

Charge  to  this  account  at  or  before  the  close  of  any  fiscal  period  that  pro- 
portion of  the  unamortized  discount  and  debt  expense  on  outstanding  debt 
which  is  applicable  to  the  period.  This  proportion  shall  be  determined  ac- 
cording to  a  rule,  the  uniform  application  of  which  during  the  interval  be- 
tween the  issue  and  the  maturity  of  any  debt  will  completely  amortize  or 
wipe  out  the  discount  at  which  such  debt  was  issued  and  the  debt  expense 
connected  therewitli.  Such  amortization  may  at  the  option  of  the  corporation 
be  earlier  effected  by  charging  all  or  any  portion  of  such  discount  and  debt 
expense  to  account  No.  939,  "  Other  Deductions  from  Surplus,"  immediately 
upon  issue  of  the  debt  or  thereafter. 

929.  Amortization  of  Premium  on  Debt  —  Cb. 

Credit  to  this  account  at  or  after  the  close  of  any  fiscal  period  the  propor- 
tion rf  the  premium  at  which  outstanding  debt  was  issued  which  is  applicable 
to  the  period.  This  proportion  shall  be  determined  according  to  a  rule,  the 
imiform  application  of  which  during  the  interval  between  the  issue  and  the 
maturity  of  any  debt  will  completely  amortize  or  wipe  out  the  premium  at 
which  such  debt  was  issued.  Sucli  amortization  may  at  the  option  of  tiie 
corporation  be  effected  by  crediting  all  or  any  portion  of  such  premium  to 
account  No.  931b,  "  Other  Additions  to  Surplus,"  only  upon  the  maturity 
of  the  debt. 


Accounts  for  Electrical  Corporations      55 

24.  Appropriations. —  The  balance  resulting  from  closing  the  foregoing 
Income  Deduction  accounts  for  any  fiscal  period  into  Gross  Income  for  that 
period  gives  the  Net  Corporate  Income  for  the  period.  The  net  corporate 
income  being  of  the  same  nature  as  the  corporate  surplus  shall  be  closed  into 
the  "  Corporate  Surplus  or  Deficit "  account.  The  group  of  accounts  which 
show  for  any  fiscal  period  the  changes  in  the  "Corporate  Surplus  or  Deficit" 
account  are  designated  the  "Appropriation "  accounts,  for  the  reason  that 
substantially  all  of  them  are  subject  only  to  the  discretion  of  the  corpora- 
tion. At  the  end  of  each  fiscal  period  each  of  the  "Appropriation  "  accounts 
shall  be  closed  into  the  "  Corporate  Surplus  or  Deficit "  account. 

25.  Definitions  of  Appropriation  accounts. —  In  the  following  definitions  of 
the  Appropriation  accounts  the  letters  and  numbers  prefixed  to  the  titles  of 
the  accounts  are  inserted  solely  for  convenience  of  reference  and  are  no  part 
of  the  titles  or  of  the  definitions: 

931a.  Bad  Debts  Collected. 
When  any  debt  theretofore  written  off  as  a  bad  debt  is  collected,  the  amount 
of  the  collection  shall  be  credited  to  this  account.     Expense  involved  in  such 
collection  shall  be  charged  to  this  account. 

931b.  Other  Additions  to  Surplus. 

Credit  to  this  account  all  additions  to  surplus  because  of  erroneous  account- 
ing in  prior  fiscal  periods,  and  all  other  additions  to  surplus  not  elsewhere 
provided  for. 

Note. —  A  complete  analysis  of  this  account  will  be  required  In  annual  reports  of 
corporations  to  the  Public  Service  Commission. 

932.  Expenses  Elsewhere  Unprovided  For. 

Charge  to  this  account  all  expenses  not  chargeable  as  a  part  of  operating 
expenses  or  of  non-operating  expenses,  such  as  fines  levied  on  the  corporation 
for  violation  of  law,  for  misfeasance,  for  non-feasance,  etc.,  fine^  levied  on 
directors,  officers,  and  other  employees  and  assumed  by  the  corporation,  do- 
nations to  funds,  to  churches  and  other  associations,  and  other  like  expenses 
and  outgoes. 

933.  Dividends  on   Outstanding  Stocks. 

When  any  dividend  is  declared  upon  any  outstanding  stocks  of  the  corpo- 
ration, the  amount  of  such  dividend  shall  thereupon  be  charged  to  this  ac- 
count. All  entries  to  this  account  shall  show  the  amount  of  stock  upon  which 
the  dividend  is  declared,  the  class  of  such  stock,  and  the  rate  of  the  dividend 
as  well  as  the  amount  thereof;  and  if  the  dividend  is  payable  in  any  other 
thing  than  money,  such  thing  shall  be  described  in  the  entry  with  sufficient 
particularity  to  identify  it,  and  the  actvial  money  value  thereof  shall  be 
stated  as  the  amount  of  the  dividend. 

When  any  dividend  is  declared  upon  the  stocks  of  the  corporation  held  in 
its  treasury,  the  amount  of  such  dividend  thereon  shall  be  credited  to  this 
account.  Entries  of  credits  to  this  account  shall  be  made  with  the  same  de- 
gree of  particularity  as  is  prescribed  in  the  preceding  paragraph. 

934.  Amortization  Elsewhere  Unprovided  Fob. 
Charge  to  this  account  such  amortization  as  is  not  elsewhere  provided  tor. 
This  account  provides  for  all  optional  amortization,  such  as  that  of  discount 
on  stocks  outstanding,  abandoned  property,  etc. 


56  Public  Sekvice  Commission,  Second  Distkict 

i 

935.  Appropriations  to  Reserves. 
Charge  to  this  account  all  optional  appropriations  to  reserve!. 

930.  Gifts  to  Controlled  Corporations. 
Charge  to  this  account  all  gifts  made  by  the  corporation  to  its  controlled 
<!orporation8,  also  such  portions  of  all  advances  thereto  as  are  not  carried  as 
assets. 

937.  Other  Appropriations. 
Charge  to  this  account  all  optional  appropriations  made  by  the  corpora- 
tion and  not  elsevi'here  provided  for. 

NoTK. —  A  complete  analysis  of  this  account  will  be  required  in  annual  reports 
of  corporations  to  the  Public  Service  Commission. 

938.  Bad  Debts.  Written  Off. 

Charge  to  this  account  the  amount  by  which  debts  are  written  off  from  the 
accounts  of  the  corporation  when  they  become  stale  and  are  placed  in  the 
"  bad  debt  "  class. 

Note. —  Such  •'  uncollectible  bills  "  as  have  been  provided  for  In  the  heretofore 
defined  "  Uncollectible  Bills  "  accounts  must  not  be  included  In  this  account. 

939.  Other  Deductions  from  Surplus. 

Charge  to  this  account  all  deductions  from  surplus  because  of  erroneous 
accounting  in  prior  fiscal  periods,  and  all  other  deductions  from  surplus  not 
elsewhere  provided  for. 

Note. —  A  complete  analysis  of  this  account  will  be  required  in  annual  reports 
of  corporations  to  the  Public  Service  Commission. 


LIST  OF  ACCOUNTS. 


SCHEDULE  A:    BALANCE  SHEET  OR  INDICANT  ACCOUNTS. 

Fixed  Capital.  page. 

ElOO.     Fixed  Capital,  December  31,  1908 9 

EllO.     Land  Devoted  to  Electric  Operations 9 

101.     Organization 10 

E102.     Franchises    (Electric)     10 

E103.     Patent-rights   (Electric) 11 

E104.     Other  Intangible   Electric   Capital 11 

E121.     General   Structures   11 

E122.     General  Equipment   12 

E131.     Dams,   Canals,  and   ripe   Lines 12 

E132.     Power   Plant   Buildings 12 

E141a.   Furnaces,  Boilers,  and  Accessories r 13 

E141b.  Steam    Engines    13 

E142.     Turbines    and    Water-wheels 13 

E143a.  Gas  Producers   and  Accessories 13 

E143b.  Gas    Engines    13 

E144a.  Electric   Generators 14 

El  44b.  Accessory    Electric    Power    Equipment 14 

E145.     Miscellaneous  Power  Plant  Equipment 14 

E151.      Sub-station    Buildings    14 

El  52.     Sub-station    Equipment    14 

E161.     Poles  and  Fixtures   15 

E162.     Underground  Conduits 15 

E163.     Transmission  System    15 

E164.     Distribution     System     15 

E165.     Line   Transformers    and    Devices 15 

E166.     Electric    Services     15 

E167a.  Electric    Meters    16 

E167b.  Electric  Meter  Installation 16 

E171.     Municipal  Street  Lighting  System  (Electric) 16 

E172.     Commercial  Arc   Lamps    16 

E173.     Glower   Lamps    16 

E174.     Electric  Motors  and   Heaters 17 

E175.     Electric  Tools  and   Implements 17 

E176.     Electric    Laboratory    Equipment 17 

E177.     Other    Tangible    Electric    Capital 17 

E281.     Engineering   and   Superintendence    17 

B282.     Law  Expenditures  During  Construction 17 

E283.     Injuries  During  Construction    17 

E284.     Taxes  During  Construction 18 

E285.     Miscellaneous   Construction   Expenditures 18 

E286.     Interest  During  Construction 18 

Olio.     Land  in   Other   Departments 18 

0102.  Franchises  in  Other  Departments 19 

0103.  Patent-rights  in  Other  Departments 19 

0104.  Other  Intangible  Capital   In  Other  Departments 19 

O120      Tangible  Capital  in  Other  Departments 19 

Floating   Capital. 

E  10.     IMaterials    and    Supplies 19 

1.  Cash 20 

2.  Bills   Receivable    20 


58  PuBuc  See  VICE  Commission,  Second  District 

PAGE. 

8.     Accounts   Receivable    20 

4.  Interest    and    Dividends    Receivable 20 

5.  Other  Current  Assets 21 

Investments. 

300.     Investments 21 

Special  Deposits. 

311.  Coupon   Special  Deposits    21 

312.  Dividend  Special  Deposits 22 

313.  Other   Special  Deposits 22 

Prepayment  Accounts. 

321.  Prepaid   Taxes    22 

322.  Prepaid    Insurance    22 

323.  Prepaid    Rents     22 

324.  Other    Prepayments    22 

Suspense   Accounts. 

331.  Unamortized  Debt  Discount  and  Expense 23 

332.  Other  Suspense  23 

Re-acqdibed   Securities. 

840.     Re-acqulred  Securities 24 

Debt. 

360.     Funded 24 

Unfunded 24 

351.  Taxes   Accrued   25 

352.  Receiver's    Certificates    25 

353.  Judgments   Unpaid    25 

354.  Interest    Accrued    25 

355.  Dividends   Declared    26 

356.  Bills    Payable    26 

E357a.       Consumers'  Deposits  —  Electric    ^  . .  26 

357b.       Other  Accounts   Payable    26 

358.         Other  Unfunded   Debt    26 

Reserves. 

Permanent 26 

871.         Premiums  on   Stocks    26 

372.  Other  Permanent  Reserves 27 

Temporary 27 

Contractual 27 

Required 27 

374.  Accrued   Amortization    o?   Capital.. 27 

375.  Unamortized  Premium  on  Dubt   27 

376.  Other  Required  Reserves 28 

Optional 28 

381.  Casualties  and   Insurance   Reserve 28 

382.  Other  Optional  Reserves    , 28 

Stocks. 

390.     Stocks 28 

SCHEDULE  B:    INCOME  ACCOUNT. 
Operating  Revenues. 

401.  Municipal   Street  Lighting  —  Arc 31 

402.  Municipal    Street    Lighting — Incandescent 31 

403.  Lighting    Municipal    Buildings  —  Electric 31 

404.  Municipal    Ileat   and   Power  —  Electric 32 

405.  Miscellaneous    Electric    Revenue  —  Municipal 32 

406.  Commercial   Flat    Rate  Lighting 32 

407.  Commercial    Flat    Rate    Power 32 

408.  Commercial    Metered   Lighting .12 

409.  Commercial    Metered   Power    32 


List  of  Accounts  59 

PAGE. 

410.  Railroad   Corporations    32 

411.  Otlier   Electrical   Corporations    32 

421.  Rent  of   Electric   Meters 33 

422.  Rent   of  Electric   Appliances 33 

423.  Electric   Merchandise   and   Jobbing  Revenue 33 

424.  Sale  of  Byproducts    33 

425.  Joint   Electric    Rent    Revenue 33 

426.  Break-down    Service    33 

427.  Otlier  Miscellaneous   Electric    Revenue 33 

Operating    Expenses. 
I.  Production  Expenses. 

ESOla.  Station   Superintendence  and   Care 35 

ESOlb.  Boiler   Labor    3r> 

E501c.  Producer    Labor    35 

E50id.   Engine    T^abor    35 

E501e.   Electric   Labor    35 

E502a.  P\iel   for    Steam    35 

E502b.  Fuel    for   Producer   Gas 35 

E503a.   Water  for  Steam  Power  and  Gas 35 

E503b.  Water   for   Hydraulic   Power 35 

E504.     Lubricants   for   Power    35 

E505a.   Production    Supplies    36 

E505b.  Station    Expense    36 

E507.     Repairs  of   Power  Plant   Buildings 36 

E508a.  Repairs  of  Furnaces   and   Boilers 36 

E508b.  Repairs  of  Boiler    Apparatus    36 

E508e.   Repairs  of  Steam    Accessories 36 

E509a.   Repairs  of  Reciprocating    Engines     37 

E509b.   Repairs  of  Steam    Turbines     37 

E50f)c.   Repairs  of  Other   Steam    Engine    Equipment 37 

E510a.   Repairs  of  Dams,   Canals,   and    Pipe   Lines 37 

E510b.   Repairs  of  Turbines   and    Water-wheels    37 

E511a.  Repairs  of  Gas  Producers  and   Accessories    37 

E511b.  Repairs  of  Gas  Engines 37 

IC512a.   Repairs  of  Electric    Generators    37 

E512b.  Repairs  of  Accessory   Electric    Equipment    37 

E513a.   Repairs  of  Station    Tools    and    Implements 38 

E513b.   Repairs  of  Miscellaneous   Station   Equipment    38 

E514.     Steam  from   Other   Sources 38 

E515.     Power  Gas  from  Other  Sources 38 

E516.     Electric   Energy   from   Other   Sources 38 

II.   Transmission  Expanses. 

E521a.  Transmission   Subway  Rent 38 

E522a.  Transmission  Pole  and  Fixture   Repairs 39 

E523a.  Transmission  Underground  Conduit  Repairs    39 " 

E524a.  Overhead   Transmission    System    Repairs 39 

E524b.  Underground   Transmission    System    Repairs 39 

B525.     Sub-station    Labor    39 

E526.     Sub-station    Supplies   and   Expenses 39 

E527.     Repairs  of  Sub-station  Buildings 40 

F528.     Repairs  of  Sub-station  Equipment 40 

/// .  Elei  trie  Storage  Expert  es. 

E529a.   Storage  Battery  Labor , 40 

E529b.  Storage  Battery  Supplies 40 

E529c.  Storage  Battery  Renewals 40 

E529d.  Repairs   of   Storage   Battery  Accessories 40 

IV.  Distribution,  Expenses. 

E531.     Electric  Dlstrilnition   Si;perintendence 40 

E532a.   Electric  Distribution  Maps   and    IJecords 40 

R532b.  Electric  Distribution  Office    Expense    40 


60  Public  See  vice  Commission,  Second  Distkict 

FAOK 

E533.     Setting  and  Removing  Meters  and  Transformers 41 

E521b.  Distribution    Subway    Rent    41 

E522b.  Distribution  Pole  and   Fixture   Repairs 41 

E523b.  Distribution   Underground   Conduit    Repairs 41 

E534a.   Overhead  Distribution   System   Repairs 41 

E534b.  Edison   Tube   System   Repairs 41 

E534e.  Other  Underground  Distribution  System  Repairs 41 

E535a.  Repairs  of  Electric    Services    41 

E535b.  Repairs  of  Transformers 42 

E536a.  Electric  Meter  Operation 42 

E536b.   Electric  Meter  Repairs 42 

V.  Utilization  Expc:  scs. 

541a.  Commercial  Arc  Labor 42 

541b.  Commercial  Arc  Supplies 42 

542.     Commercial  Arc  Repairs 42 

543a.   Commercial  Incandescent  Installation 42 

543b.  Commercial  Incandescent  Renewals 42 

544a.  Inspection  of  Consumers'  Premises    42 

544b.   Repairs    of    Consumers'    Installations. 42 

545a.  Municipal   Street  Arc  Labor 43 

545b.  Municipal  Street  Arc  Supplies 43 

546.     Municipal   Street  Arc  Repairs 43 

547a.  Municipal  Street  Incandescent  Installation 43 

547b.   Municipal   Street  Incandescent  Renewals 43 

548.     Municipal  Street  Incandescent  Repairs 43 

VI.  Commercial  Expenses. 

10551.     Commercial   Administration  —  Electric    43 

F552.     Promotion    Office    Expense  —  Electric 44 

E553.     Advertising  —  Electric 44 

E554.      Canvassing   and    Soliciting  —  Electric 4i 

E555.     Promotion   Wiring  and   Devices 44 

VII.  General  and  Miscellaneous  Expenses. 

E833.     Salaries  and  Expenses  of  General  Officers 44 

10834.     Salaries  and  Expenses  of  General  Office  Clerks 44 

13835.     General  Office  Supplies  and  Expenses 45 

E836.     General  Law  Expenses 45 

E837.     Miscellaneous  General  Expenses    45 

E838.     Insurance 45 

E839a.  Relief  Department  Expenses  45 

E839b.   Pensions 45 

E840.     Electric  Franchise  Requirements    45 

E842.     General  Amortization  —  Electric 46 

E845.     Electric  Expenses  Transferred  —  Cr 46 

E846.     Joint  Operating  Expense  —  Cr 46 

E847a.  Accidents  and  Damages    47 

E847b.  Law  Expenses  Connected  with   Damages 47 

E848.     General  Stationery  and  Printing  48 

E850.     Store    Expenses    48 

E851.     Stable  Expenses   48 

E852.     Undistributed  Adjustments  —  Balance 48 

E853.     Duplicate   Electric   Charges  —  Cr 48 

Taxes. 

E860.     Taxes 40 

E870.     Uncollectible  Electric  Bills   4U 

Non-operating   Revenues. 

E901a.  Rent  Accrued  from  Lease  of  Electric  Plant 49 

EOOld.  Miscellaneous  Rent  Revenues 50 

902.  Interest  Revenues   50 

903.  Dividend   Revebiios    50 

904.  Profits  from  Operations   of  Others 51 

905.  Miscellaneous  Non-operating  Revenues   61 


List  OF'-Aet'o^xTs  *•.■■*:*%:'•;  :/.\  61 


NOX-OrERATIXG    REVENUE    DEDUCTIONS.  PAGE. 

910.     Non-operatinj?  Reveuiie  Deductions    51 

a.  Kent    Expense    .• 51 

b.  Interest  lOxpense    51 

e.  Dividend   Expense    51 

d.  Others'   Operations   Expense 51 

e.  Miscellaneous  Non-operating  Expense 52 

f.  Non-operating    Taxes    52 

g.  Uncollectible  Non-operating  Revenues 52 

Income   Deductions. 

921.     Interest   Deductions    52 

922a.  Rent  for  Lease  of  Other  Electric  Plant 53 

922f.    Joint   Facility   Rents    53 

022g.  Miscellaneous    Rent    Deductions 53 

923.  Sinking  Fund   Accruals    53 

924.  Guaranties  of  Periodic  Payments 53 

925.  Loss    on    Operations   of    Others 54 

926^    Other  Contractual  Deductions  from  Income 54 

927.  Amortization  of  Landed    Capital    54 

928.  Amortization  of  Debt   Discount  and   Expense    54 

929.  Amortization  of  Premium   on  Debt  —  Cr 54 

Appropriation   Accounts. 

931a.  Bad  Debts  Collected   '. 55 

931b.  Other   Additions    to    Surplus 55 

932.  Expenses    Elsewhere    Unprovided    for 55 

933.  Dividends  on  Outstanding  Stocks 55 

934.  Amortization  Elsewhere   Unprovided   for 55 

935.  Appropriations  to  Reserves    56 

936.  Gifts    to   Controlled   Corporations 56 

937.  Other    Appropriations     56 

938.  Bad  Debts   Written  Off 56 

939.  Other   Deductions   from   fe^nrplus 56 


■^t,>^ 


